BURBANK, Calif. — Budget airline Avelo Airlines announced Monday it will close its base at Hollywood Burbank Airport and end all West Coast operations by December, citing financial struggles in a competitive market.

The Houston-based carrier said it will reduce its Burbank operation to one aircraft on Aug. 12 and end all flights by Dec. 2. The decision effectively ends Avelo’s West Coast presence, where the airline launched its first flight more than four years ago. 

The announcement comes as Avelo has faced criticism over its agreement with the Department of Homeland Security to conduct deportation flights. The airline began federal deportation flights from Mesa Gateway Airport outside Phoenix in May under a contract with Immigration and Customs Enforcement. The ICE agreement sparked boycott campaigns and protests at airports across the country.

The aircraft currently stationed at Burbank will be moved to markets on the East Coast, where the company sees “significantly more opportunity to continue our path to sustainable cash flow generation,” according to the statement.

“We believe the continuation service from BUR in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop,” an Avelo spokesperson said in a statement. The spokesperson said the airline had invested “significant time, resources and efforts” to improve West Coast financial results but had not achieved necessary returns.

The closure will affect all West Coast flights, meaning routes to destinations like Eureka, Calif., Salem, Ore., and other regional airports will end.

Avelo, which launched in 2021 during the pandemic, operates a fleet of older Boeing 737 jets from secondary airports to serve routes ignored by major airlines. The carrier reported its first profitable quarter in late 2023 but has not disclosed detailed financial information.

The airline will continue operating at more than 40 cities across the United States, as well as international destinations in Jamaica, Mexico and the Dominican Republic. Affected customers have been notified about changes to their reservations and refund options.

The Associated Press contributed to this report.