Avelo Airlines becomes the first carrier at McKinney National Airport, marking a historic turning point for North Texas aviation. The Houston-based ultra-low-cost carrier signed a five-year use agreement this week. The milestone will create well over 100 jobs in the region and launch commercial service starting November 2026.
🔥 Quick Facts
- Avelo Airlines signed a five-year agreement with optional extension on December 17, 2025
- The partnership will generate over 100 North Texas jobs when services launch
- McKinney’s 46,000-square-foot commercial terminal opens in late 2026
- Avelo will operate from four gates with expansion capacity to six gates
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McKinney National Airport achieved a major milestone this month by securing its first commercial airline partner. Avelo Airlines finalized a comprehensive agreement that covers runway access, taxiway usage, aircraft parking, maintenance areas, and dedicated office space.
The ultra-low-cost carrier launched in 2021 after founder and CEO Andrew Levy purchased and rebranded what was formerly XTRA Airways. Avelo focuses on affordable fares and efficient operations targeting smaller regional airports across America.
Economic Impact and Job Creation for the Region
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The partnership promises significant economic growth for North Texas. Andrew Levy, founder and CEO of Avelo Airlines, stated the expansion will create “well over 100 jobs” in the area. These positions will span multiple departments including flight operations, maintenance, customer service, and ground handling.
McKinney Mayor Bill Cox praised the achievement, noting the airport team worked diligently to deliver convenient and affordable air service to residents and visitors. The job creation aligns with broader economic development goals for the McKinney and Collin County region.
Terminal Construction on Track for 2026 Launch
| Terminal Feature | Details |
| Terminal Size | 46,000 square feet |
| Initial Gates | Four gates with expansion to six |
| Parking Lot | 980 spaces (expandable to 1,450) |
| Expected Opening | Late 2026 |
| Project Cost | $79 million |
The $79 million expansion project broke ground in July this year with strong community support and state funding. The terminal features car rental facilities, concessions areas, and a public parking lot designed for convenience and accessibility.
McKinney received a $14.8 million grant from Texas Department of Transportation to support terminal construction. The city also appropriated remaining funds from the McKinney Economic Development Corporation allocation to complete support facilities.
Avelo’s Expansion Strategy and Service Timeline
Avelo will announce specific launch dates and nonstop destinations a few months before the commercial terminal opens in late 2026. The airline previously indicated it could begin service with as many as three daily flights using Boeing 737 aircraft.
The carrier operates as an ultra-low-cost airline focused on secondary markets underserved by major carriers. This McKinney expansion represents another strategic growth opportunity for Avelo Airlines’ network expansion across the United States and continued Texas market presence.
What Changes for North Texas Air Travel Becoming More Competitive?
McKinney’s entrance into commercial aviation transforms the competitive landscape in the North Texas region. Historically, travelers relied on DFW International Airport (hub for American Airlines) and Dallas Love Field (headquarters of Southwest Airlines) for commercial flights.
Adding a third commercial airport with budget airline service provides more competition, potentially driving down fares across the region. Collin County residents and northern Dallas suburbs gain closer airport access without traveling to central Dallas. This development supports McKinney’s status as one of North Texas’s fastest-growing communities.
Sources
- Dallas News – Comprehensive coverage of Avelo Airlines agreement and McKinney expansion details
- City of McKinney Official – Airport announcements and timeline updates
- Fox 4 News Dallas-Fort Worth – Commercial airline approval and project confirmation
Patrick Graham is a business and finance journalist translating Wall Street’s complexities into stories that matter to everyday readers. With extensive experience in financial journalism and economic analysis, this expert journalist provides sharp insights on market trends, corporate developments, and the economic forces affecting daily life. His reporting helps readers make sense of the business world’s biggest moves.