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All-Inclusive Vacation Packages: Leave Your Worries and Wallet Behind

Whether you're looking for a romantic escape, an adventure with friends, or a memorable family vacation, we’ve got all-inclusive getaways with your name on it. Between gourmet dining, thrilling activities, and endless entertainment for everyone – including kids clubs at select resorts – we’re here to craft your complete all-inclusive package at one great price. Liberty Travel agents are experts in the destinations you seek, so pack everything but your worries and indulge with us.

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Liberty Travel has partnered with Affirm to offer flexible payment options that allow you to book now and pay over time with no late or hidden fees. When you're ready to book, connect with a consultant and request Affirm as your payment method. Pick the payment plan that works best for you with fixed monthly installments from 3, 6, 12 or 18 months*. Subject to eligibility.

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Here’s What’s Included in an All-Inclusive Vacation Package—The Liberty Travel Way

Simply put, a lot. At an all-inclusive resort, you pay one flat price for your room, all gourmet meals and drinks (including premium cocktails). But, that’s just the beginning. Rolled into the deal are a host of activities, like water sports, tennis, golf, cooking classes, yoga, wine tastings, entertainment programs, kid camps and teens clubs.

The Liberty Travel Difference: We partner with top resorts to bring you My Time , a set of exclusive perks such as, express check-in/out, welcome gifts, and spa or resort credits at no additional cost.

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Where Are Some of the Top All-inclusive Resorts?

Aruba : Flawless weather, pulsating nightlife, endless beaches, sapphire waters, roaring casinos

Antigua : Duty-free shopping, British traditions, colorful markets, spectacular snorkeling

Bahamas : Soft white sands, private islands, sophisticated city life, thrilling water sports

St. Lucia : Iconic landscapes, champagne sunsets, palm-fringed beaches, intimate resorts

Cancun : World-class beaches, glitzy nightlife, bustling mercados, gourmet dining

Cozumel : Unparalleled scuba thrills, great golfing, island breezes, awesome horizons

Riviera Maya : Cobalt waters, powdery sands, limestone caves, Mayan ruins, eco-parks

Los Cabos : Luxurious resorts, sweeping coastlines, hip nightlife, sun-drenched hedonism

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Your perfect vacation is out there, it’s time to discover it.

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Don’t let the humdrum of planning a trip suck all the fun out of your getaway. Leave the tedious work up to Hotwire so you can spend more time focusing on which restaurants you’re going to try and all the activities you want to complete during your trip. Hotwire’s philosophy is simple. Book with us so you can stop planning and start exploring!

With Hotwire, searching for and creating your own cheap vacation packages is easy. Just plug in your destination, pick any combination of flights, hotels, or car rentals and boom, you’ll have your list of cheap vacations. You can bundle flight and hotel packages for an incredibly low price.

Vacationing on a whim? Trust Hotwire to get you affordable last-minute vacation deals.

Hotwire does the planning; you do all the saving. By spending less, you’ll have more money to explore and discover. Make a reservation at that hot new restaurant. Take the helicopter tour. Buy the shoes you’ve been eyeing since you got here. That’s the point of vacation, right?

Or better yet, start planning your next trip with the money left over in your travel fund. Just got back from lounging on a beach getaway? Next, maybe it’s time to head to the mountains.

Whatever awesome adventure you can dream up, Hotwire will get you an amazing price on your vacation getaway deal. So, what are you waiting for? Get booking and start packing. Hotwire is here to help you score a cheap flight and hotel package with the least amount of effort.

*Savings based on all vacation package bookings with Flight + Hotel on Hotwire.com and its affiliated brands, as compared to price of the same components booked separately. Savings will vary based on origin/destination, length of trip, stay dates and selected travel supplier(s). Savings not available on all packages.

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Last Minute Monday Deals! Save big on these amazing destinations departing soon. ✈️⁠ ⁠ 📍Jewels of the Adriatic; Departs Jun. 20 ⬅️ $450 off⁠ 📍Magical Ireland: Departs Jun. 21 ⬅️ $500 off⁠ 📍Amazing Thailand; Departs Jul. 6 ⬅️ $450 off⁠ ⁠ 📸 #smarTraveler Patricia in Ireland

Smart Fact 👉️ The Maeklong Railway Market, located southwest of Bangkok, is one of the most unique markets in the world. What sets it apart is that it`s built directly on an active railway track. Several times a day, when the train passes through, vendors swiftly fold back their awnings and merchandise to make way for the train, only to set them up again as soon as it passes. It`s a fascinating display of coordination and efficiency, making the market not only a place to shop for fresh produce and local delicacies but also a must-see attraction. ⁠ ⁠ 📽️ #smarTraveler Shirajoy⁠

"The heart of India with the extension to Varanasi was an incredible trip. It was truly an adventure of a lifetime! The many architectural wonders and the passionate religious experiences we were able to share were unbelievable. I highly recommend the extension to Varanasi as it was such a highlight to be at the Ganges and experience all the religious devotions. Once again smarTours has organized a wonderful tour with high value in a very complex country." -#smarTraveler Linda⁠ ⁠ 2025 dates are now available for our Heart of India tour! Rated a favorite among travelers, this cultural journey includes highlights in Northern India, where you will explore iconic cities like Delhi and Agra, encounter majestic tigers in Ranthambore National Park, and savor authentic culinary experiences.⁠

Book early and save on 2025 trips! Treasures of Turkiye is now available to book through next fall! 12 days starting at just $1,999!⁠ ⁠ Discover Turkiye`s highlights and hidden gems, from the vibrant streets of Istanbul to the fairy-tale landscapes of Cappadocia and the picturesque Mediterranean coastline. You`ll check these amazing experiences off your bucket list:⁠ ⁠ ✅️ Visit Istanbul`s Blue Mosque and Grand Bazaar⁠ ✅️ Explore Cappadocia`s surreal rock formations⁠ ✅️ Relax on Turkey`s Turquoise Coast in Antalya⁠ ✅️ Experience the rejuvenating Pamukkale hot springs⁠ ✅️ Visit ancient Ephesus and the House of Virgin Mary⁠ ✅️ Discover the historic sites of Troy and Pergamon⁠ ✅️ Enjoy unique experiences like wine tastings and lunch at a Women`s Co-op⁠ ⁠

Last Minute Monday Deals! Save big on these amazing destinations departing soon. ✈️⁠ ⁠ 📍Enchanting Peru; Departs Jul. 13 ⬅️ $450 off⁠ 📍Spectacular Greece; Departs Aug. 6 ⬅️ $400 off⁠ 📍Treasures of Portugal; Departs Aug. 14 ⬅️ $400 off⁠ ⁠ Book your last minute adventure 👉🏻 https://bit.ly/3uV02Bu⁠ ⁠ 📸 #smarTraveler Jenny in Portugal with Tour Director Romina

"Wonderful trip to Africa! Put it on your bucket list. It was amazing!" -Anne Marie⁠ ⁠ Is South Africa on your bucket list? Link in bio to book.

Last Minute Monday Deals! Save big on these amazing destinations departing soon. ⏰️⁠ ⁠ 📍Enchanting Peru; Departs Jul. 13 ⬅️ $450 off⁠ 📍Spirit of Ecuador; Departs Aug. 26 ⬅️ $500 off⁠ 📍Spectacular Greece; Departs Aug. 6 ⬅️ $400 off⁠ ⁠ Book your last minute adventure with us!⁠ ⁠ 📸 #smarTraveler Erin in The Galapagos

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Alaska Vacations

Bucket list Alaska vacations, that's our specialty. One call does it all with our complete vacation packages.

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Easy. Stress-free. All you need, all in once place. Planning an Alaska vacation packages with Alaska Tour & Travel means you can make dozens of arrangements with just the click of your mouse, a single call, or a couple of emails. Our Alaska-based travel specialists are available to answer your questions and make sure that this one is the trip of a lifetime. Choose one of our most popular vacation packages and customize as you like, or use our My Trip tool to select your individual lodging , activity , and transportation options. With Alaska Tour & Travel, you have the ultimate control over your Alaska vacation.

If you're just getting started, we suggest you review these sample five-day , seven-day , and 10-day itineraries , or try our interactive Alaska Trip Finder tool. If you already know how you want to get around, you can dive right into our train and bus packages or self-drive vacations . You can also leave all the details to a professional guide with our escorted tour packages . More on that below.

Self-Guided vs. Fully-Guided

The vast majority of our guests travel on "self-guided" itineraries. Guests travel independently, not necessarily with the same group of fellow travelers, and without a dedicated tour guide or leader that stays with them for their entire trip. Nearly all activities and most transportation services feature guides for that particular excursion. Self-guided trips give you the ultimate flexibility to choose where to go, how long to stay, how to get around, and what things to do in each destination.

At the same time, many other travelers prefer to leave the day-to-day details of their trips to a professional. Some folks also like the comradery that comes with having the same group of fellow travelers for their entire trip. If this sounds like how you like to travel, take a look at our escorted vacation packages .

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Alaska is the perfect destination for your next multi-generational family vacation or friend trip. Every year small groups look to us to arrange custom trips to Alaska tailored to their specific interests, schedule, and budget. We have family-friendly activities , 12 or 15 passenger van rentals , expert advice , and everything you need for your Alaska group of 6 or 60. See our family vacations and small groups web pages for additional ideas, including suggested itineraries.

Alaska Cruise Vacations

Alaska Tour & Travel can also help you book a Glacier Route cruise from Vancouver to Seward or Whittier . Better yet, we have dozens of pre-cruise and post-cruise land tours specifically designed to connect with each sailing. We can also help you save $299 just by booking your Alaska cruise with us. See our cruise deals page for details.

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We've spent 25 years curating Alaska's best vacation experiences. Here are the most popular itineraries year after year. Learn More >

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Use the Alaska Trip Finder to find your perfect Alaska vacation package. From three days to three weeks, travel by train, bus, or rental car. Learn More >

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Explore Alaska by land with our best selection of five-day, seven-day, and 10-day tours. Some feature train travel, many visit Denali, some are active adventures, and all are customizable. Learn More >

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Seven days is the sweet spot for an Alaska vacation. Check out these popular itineraries for inspiration, then customize to make one your own. Learn More >

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Enjoy the ease of travel aboard both the Alaska Railroad and Park Connection Motorcoach with these seamless Alaska vacation packages. Learn More >

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Hit the road in a rental car and enjoy the freedom to travel between Alaska's top destinations at your own pace with these vacation packages for independent travelers. Learn More >

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Travel with a tour director and fellow travelers on an Alaska escorted tour. Trips range from six to eight days and coordinate well with Alaska cruises. Learn More >

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Complement an Alaska cruise with a pre-cruise or post-cruise land tour to places like Talkeetna, Fairbanks, and Denali National Park. Learn More >

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No matter the interests, ages, or group size, there's an Alaska vacation for everyone. Check out our adventure tours, family trips, and small group itineraries. Learn More >

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Barbados Vacation Packages

As a Caribbean paradise with English, African and West Indian roots, Barbados is a unique island with a rich history and even more vibrant future. 

Book a flight + hotel package today to bask in the warmth of the island and its people with nonstop Delta ® flights from: †

• Atlanta, daily, beginning November 23, 2024.
• New York (JFK), weekly (Saturdays), beginning December 21, 2024.

Explore Barbados

Named for its white sands and stunning views, the Platinum Coast is the prime spot for sunbathers and watersport enthusiasts alike.

Barbados’ capital is a melting pot of cultures and cuisines, with plenty of duty-free shopping, fine dining and colonial architecture.

The island’s year-round sunny skies make it the perfect destination for an active getaway.

• Platinum Coast Slide 1 of 3: Named for its white sands and stunning views, the Platinum Coast is the prime spot for sunbathers and watersport enthusiasts alike.
• Bridgetown Slide 2 of 3: Barbados’ capital is a melting pot of cultures and cuisines, with plenty of duty-free shopping, fine dining and colonial architecture.
• Golfing Slide 3 of 3: The island’s year-round sunny skies make it the perfect destination for an active getaway.

Stay: Sam Lord’s Castle Barbados, a Wyndham Grand Resort. This 422-room, all-inclusive retreat offers family-centered activities and child-friendly amenities and menus.

Must See:  The beauty of Barbados and pristine Atlantic Ocean views from the comfort of a  Catamaran Lunch Cruise.

Don’t Miss: Watching sea turtles hatch at Dover Beach, Pebbles Beach or Turtle Beach.

Do Try:  Signature dishes everyone’s sure to devour, from Bajan fish cakes to world-famous macaroni pie.

Adults/Couples

Stay: O2 Beach Club & Spa, with an award-winning spa, gourmet dining and adults-only amenities.

Must See:  Some of the “Seven Wonders of Barbados,” from Harrison’s Cave to the Morgan Lewis Windmill.

Don’t Miss: The bars, eateries and shops along one of the liveliest streets in Barbados: the St. Lawrence Gap.

Do Try:   The island’s national dish, flying fish and cou cou, at Oistins Fish Fry, along with a tasting or two of local rums at on a Mount Gay Rum Tour .

This is just a taste of all you can see, do and try in Barbados. Go ahead, start booking a vacation that fits your style perfectly with the freedom to choose from great hotels and exciting tours.

Whether you are a family, couple or friends vacationing together, check out more info below or call our vacation experts at  1-800-800-1504  for assistance and tips!

The west coast – known as the Platinum Coast – offers powdery sands and natural corals, plus the best backdrop for swimming, snorkeling, sunbathing and world-class watersports. Divers flock to the coast in the summer months for adventures alongside seahorses, sponges and giant sand eels on dives to underwater caves, rainbow reefs and more than 200 shipwrecks.

Breathtaking beaches abound in every direction of Barbados – the south coast is the spot for windsurfing, the rugged east coast’s Soup Bowl attracts serious surfers and the northern coast is a sensational sight with sandstone cliffs soaring straight out of the sea.

The beauty of the isle also goes far beyond its beaches. Nature lovers can take in  panoramic views amidst 53 acres of wild gardens at the Flower Forest, enjoy species sightings at the Barbados Wildlife Preserve, or wander the Welchman Hall Gully Tropical Forest where a fascinating gully – formed by the collapsed roofs of caves – is connected to one of the island’s most magnificent wonders, Harrison's Cave. For those looking to dive into local history and heritage, cultural sites include the George Washington House, where the future first president is alleged to have stayed in 1751.

For sports enthusiasts, Barbados is home to sunny, world-class golf links and a multitude of sportfishing opportunities. Spectators can also stay busy by sipping coconut rum at The Garrison Savannah horse racing track.

No matter your style, you’re sure to leave Barbados with a brimming suitcase. Broad Street in Bridgetown offers department chains and duty-free goods, the Pelican Village Shops carry an array of local handicrafts and the colorful collection of stores at the Chattel Village promises local fashion and gifts.

Where there’s a blend of cultures, there’s an enticing blend of cuisines. While seafood is the mainstay of the island’s diet, restaurants offer a range of epicurean delights with African, Caribbean, West Indian and European influences.

Don’t miss tasting the world’s oldest rum at the Mount Gay Rum Distillery or dancing the night away at the island’s best bars in St. Lawrence Gap, aka ”The Gap.”

Delta Vacations flight + hotel packages include round-trip airfare aboard a nonstop Delta ®  flight. Daily flights from Atlanta to Grantley Adams International Airport (BGI) begin November 23, 2024 and weekly flights from New York (JFK) begin  December 21, 2024. †

† Flight routings subject to change without notice.

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Top 10 most-searched summer 2024 destinations revealed by delta: where everyone will vacation.

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Everyone is looking to leave the country this summer.

Delta Air Lines has released its second annual list of the most-searched summer travel destinations for 2024 — and the most in-demand spots are international.

According to Delta search data in the US from Nov. 1, 2023, to March 18, 2024, for travel between May and August 2024, the top 10 list had numerous unsurprising tourist destinations — but also some more unique spots topping the chart.

London, Paris and Rome are the always-popular destinations that topped the list again this year, while Dublin, Barcelona and Vancouver, Canada, were newly in demand.

Searches for all of the top 10 international destinations increased more than 150% from 2023 — but one stood out more than the rest.

Athens, Greece, had the biggest surge in interest, with a whopping 248% increase in searches compared to last year.

Though the Greek city still came in at fourth place overall, it had a significantly higher surge than all the other destinations compared to 2023.

Here is the full list of Delta’s 2024 most-searched summer destinations:

• London, England
• Paris, France
• Rome, Italy
• Athens, Greece
• Cancun, Mexico
• Amsterdam, Netherlands
• Tokyo, Japan
• Dublin, Ireland
• Barcelona, Spain
• Vancouver, Canada

Meanwhile, when it comes to domestic travel, the most-searched destinations — with the exception of Delta Hubs — included Las Vegas, Orlando, Miami and Honolulu, which Delta suggests is due to an interest in “sun-drenched getaways” and major summer sporting events.

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House and Senate negotiate bill to help FAA add more air traffic controllers and safety inspectors

C ongressional negotiators have agreed on a $105 billion bill designed to improve the safety of air travel after a series of close calls between planes at the nation’s airports.

House and Senate lawmakers said Monday that the bill will increase the number of air traffic controllers and require the Federal Aviation Administration to use new technology designed to prevent collisions between planes on runways.

Lawmakers agreed to prohibit airlines from charging extra for families to sit together, and they tripled maximum fines for airlines that violate consumer laws. However, they left out other consumer protections proposed by the Biden administration.

The bill was negotiated by Republicans and Democrats who lead the House and Senate committees overseeing the FAA, which has been under scrutiny since it approved Boeing jets that were quickly involved in two deadly crashes in 2018 and 2019. The legislation will govern FAA operations for the next five years.

The Senate could vote on the 1,069-page measure as early as next week, but it could be delayed if senators try to attach unrelated bills. FAA is operating under a temporary authorization that expires May 10, and Congress might need to pass another extension.

The House approved its version of the bill last year, but a Senate committee approved a different version in February after fights over several provisions, including ones dealing with the training and retirement age of pilots.

In the end, negotiators dropped a House provision raising the mandatory retirement age for airline pilots to 67; it will remain at 65. Both chambers had already sidestepped a highly charged issue by narrowly rejecting a proposal backed by small airlines to let aspiring pilots count more time spent in simulators instead of flying planes toward reaching minimum experience standards.

The FAA has a shortage of about 3,000 air traffic controllers nationwide. Sen. Maria Cantwell, D-Wash., chair of the Senate Commerce Committee and one of the negotiators, said the final bill shows “that aviation safety and stronger consumer standards are a big priority .... It is also the first major upgrade to air traffic controller hiring in decades.”

One of the most contentious issues in the bill turns out to be a provision that would allow an additional 10 flights per day longer than 1,250 miles to and from Reagan Washington National Airport, across the Potomac River from Washington, D.C. Delta Air Lines and some Western lawmakers wanted to add 56 flights. The House said no, but a Senate committee approved 10 flights, or five round trips — and that made it into the final bill.

"We were pushing for more, but if we get five, we’ll take five,” Delta CEO Ed Bastian said in an interview this month.

United Airlines — which dominates less-convenient Dulles Airport, 25 miles west of the nation's capital — opposed the idea. Lawmakers from Virginia and Maryland said Monday they were “deeply frustrated” at the provision, arguing that National is already too busy. They pointed to a close call there between two planes earlier in April, calling it a “flashing red warning light," and a choice of convenience over safety.

Lawmakers in both chambers rejected a proposal from consumer groups to give state officials power to regulate airlines, but the administration separately cut a deal letting 15 mostly Democratic states help the U.S. Transportation Department enforce federal consumer-protection rules.

Some other provisions in the bill:

— The Transportation Department will create a “dashboard” so consumers can compare seat sizes on all the airlines, but lawmakers stopped short of setting a minimum size.

— The bill would write into law that airlines must pay a refund to customers for flight delays – at three hours for a domestic flight and six for an international one. The Transportation Department issued a similar regulation last week, but laws are harder for future administrations to change.

— When airlines offer travel credits instead of a refund, the credits must be valid for least five years.

— Maximum civil penalties against airlines that violate consumer-protection laws would triple, from $25,000 to $75,000.

— Starting next year, new airline planes must have cockpit voice recorders capable of saving 25 hours of audio, up from the current two hours, to help investigators. This won’t apply retroactively to planes already in use.

— Requires the FAA to increase oversight of aircraft repair shops in other countries, a key demand in recent years by U.S. airline unions, which claim the foreign shops aren’t as safe.

— Requires the FAA to create a new system for tracking and locating high-altitude balloons. This became an issue in February 2023 when a Chinese balloon drifted across the entire U.S. The military shot it down off South Carolina, but not before Secretary of State Antony Blinken canceled a high-level visit to China in response to the incident.

Mary Clare Jalonick in Washington contributed to this report. Koenig reported from Dallas.

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Automatic Refunds and No More Hidden Fees: D.O.T. Sets New Rules for Airlines

The Transportation Department issued new requirements on refunds when flights are canceled or delayed and on revealing “junk” fees before booking. Here’s what passengers can expect.

By Christine Chung

The Transportation Department on Wednesday announced new rules taking aim at two of the most difficult and annoying issues in air travel: obtaining refunds and encountering surprise fees late in the booking process.

“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them — without having to ask,” said U.S. Transportation Secretary Pete Buttigieg in a statement, adding that the changes would not only save passengers “time and money,” but also prevent headaches.

The department’s new rules, Mr. Buttigieg said, will hold airlines to clear and consistent standards when they cancel, delay or substantially change flights, and require automatic refunds to be issued within weeks. They will also require them to reveal all fees before a ticket is purchased.

Airlines for America , a trade group representing the country’s largest air carriers, said in a statement that its airlines “abide by and frequently exceed” D.O.T. consumer protection regulations.

Passenger advocates welcomed the new steps.

Tomasz Pawliszyn, the chief executive of AirHelp, a Berlin-based company that assists passengers with airline claims, called it a “massive step forward and huge improvement in consumer rights and protection” that brings the United States closer to global standards in passenger rights.

Here’s what we know about the D.O.T.’s new rules, which will begin to go into effect in October.

There’s now one definition for a “significant” delay.

Until now, airlines have been allowed to set their own definition for a “significant” delay and compensation has varied by carrier . Now, according to the D.O.T., there will be one standard: when departure or arrival is delayed by three hours for domestic flights and six hours for international flights.

Passengers will get prompt refunds for cancellations or significant changes for flights and delayed bags, for any reason.

When things go wrong, getting compensation from an airline has often required establishing a cumbersome paper trail or spending untold hours on the phone. Under the new rules, refunds will be automatic, without passengers having to request them. Refunds will be made in full, excepting the value of any transportation already used. Airlines and ticket agents must provide refunds in the original form of payment, whether by cash, credit card or airline miles. Refunds are due within seven days for credit card purchases and within 20 days for other payments.

Passengers with other flight disruptions, such as being downgraded to a lower service class, are also entitled to refunds.

The list of significant changes for which passengers can get their money back also includes: departure or arrival from an airport different from the one booked; connections at different airports or flights on planes that are less accessible to a person with a disability; an increase in the number of scheduled connections. Also, passengers who pay for services like Wi-Fi or seat selection that are then unavailable will be refunded any fees.

Airlines must give travel vouchers or credits to ticketed passengers unable to fly because of government restrictions or a doctor’s orders.

The vouchers or credits will be transferable and can be used for at least five years after the date they were issued.

Fees for checked baggage and modifying a reservation must be disclosed upfront.

Airlines and ticket agents are now required to display any extra fees for things like checking bags or seat selection clearly and individually before a ticket purchase. They will also need to outline the airline’s policies on baggage, cancellations and changing flights before a customer purchases a ticket.

The rules, which apply to all flights on domestic airlines and flights to and from the United States operated by foreign airlines, have varying start dates.

For example, automatic refunds must be instituted by the airlines within six months. But carriers have a year before they’re required to issue travel vouchers and credits for passengers advised by a medical professional not to fly.

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Christine Chung is a Times reporter covering airlines and consumer travel. More about Christine Chung

Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .

Insider Q&A: Avelo Airlines CEO Andrew Levy describes the challenges of starting a new carrier

It’s not easy to break into the U.S. airline industry, which is dominated by four big carriers and a sprinkling of other niche players, but that didn’t scare away Andrew Levy.

Neither did a pandemic that briefly caused air travel to plummet more than 90%.

In April 2021, while COVID-19 still raged and billions of dollars from taxpayers were propping up big airlines, Levy launched Avelo Airlines with flights between Burbank, California, and Las Vegas.

The airline saves money by flying older Boeing 737 jets that can be bought at relatively low prices. It operates out of less-crowded and less-costly secondary airports, and flies routes that are ignored by the big airlines.

Levy was involved in the launch of ValuJet, which became Allegiant Air, and he also did a stint as the chief financial officer of United Airlines before starting Avelo (it rhymes with yellow).

He spoke with The Associated Press about the challenges of starting a new airline, how the carrier is doing, and plans to sell shares to the public. The answers were edited for length and clarity.

Q: Why did you think you should start a new airline?

A: Shortly after I left Allegiant in 2014, I actually started thinking about about doing this. The market had become very consolidated, and there was a lot of opportunity that was out there that wasn’t being served by the existing, incumbent carriers. You have these four behemoths that are massive, that are protected by the government it seems, because certainly they’re stronger than they have ever been, after the pandemic. My view was we had room for more.

Q: What have you learned?

A: While there are these four behemoths, the toughest challenge, quite honestly, might even be the regulatory regime. For smaller companies like ours, it imposes these really substantial burdens on us. I’ll give you an example. For the (Department of Justice) lawsuit (against) JetBlue and Spirit, we had to go spend a ton of money on our end to produce documents for something that we really didn’t care how it ended up. And they’re trying to get us to do the same thing for Alaska-Hawaiian, which again, we could care less if Alaska and Hawaiian merge.

Q: How do you get people to fly on a new airline?

A: Number one, you have an awareness issue. You want people to know that you exist. So that’s one challenge, which is more of a marketing challenge. The other challenge is of course getting people to trust you. Like, ‘Who are these people? Are they going to really get me there? What’s the airplane going to look like? Is it safe? Is it reliable? What happens if something goes wrong?’ All those questions that most consumers may have when they think about choosing an airline that perhaps they’re unfamiliar with. You just have to focus on doing a really great job. Obviously not every flight is on time, but as time goes on I think people recognize that, hey, you know what? These guys offer a lot of value. We offer great convenience.

Q: Where does the name, Avelo, come from?

A: There’s no great story there. I wish I could tell you it was. It was a play on two words: velocity, which is swift in Latin, and convenience.

Q: Avelo reported a profit for fourth quarter 2023 but gave no details. Was that on a GAAP (generally accepted accounting principles) basis? And how much was it?

A: We actually have cash that generates interest income nowadays. Those are GAAP numbers where we have audited financials from Ernst & Young. These are real numbers with no adjustments or anything else. I’m not going to give you the numbers because we are a private company and so we have no real need to provide that kind of information. I’ll tell you that we made money in the first quarter as well.

Q: You've talked about your cost advantage as a startup. Is that sustainable?

A: Most costs creep up over time for every airline because our labor costs are tied to pay scales, but it is very sustainable. It’s based on how we designed the business. We distribute our product directly to the customer so we don’t use third-party intermediaries. We go in to smaller, more convenient, less-expensive airports. Your taxi times are lower; you’re not burning gas. We spend money on things that matter, and that includes our people. Our pilot pay is very competitive. It’s not the same as United Airlines, but it’s extremely competitive. We operate older equipment also — midlife (Boeing) 737 NGs, and those are certainly less expensive than brand-new aircraft. They burn a little bit more gas, but not much, and we like that trade.

Q: Do you plan to sell stock to the public, and when?

There’s obviously two issues. The single biggest one is one we don’t control, which is when are the IPO markets going to be actually open and vibrant, and they’re not right now. Beyond that, we have to be ready as a company. We put two straight quarters of profits ... so we expect every quarter this year to be profitable. We hope that we’ll have a company that people would want to own, and hopefully by year end or sometime next year. There’s no magic to being public for us. It’s just that historically that is typically the best way to access the capital markets for companies like ours. It is a very capital-intensive industry.

Q: What advice would you give to somebody else looking to start a business?

A: There’s nothing more rewarding than taking control of of your destiny. Just make sure you know what you think you know about whatever it is you’re going to start. I think you have to be wired a certain way to want to do something like this because it’s unbelievably difficult. I’ve been at this now for almost six years. When we get to a certain point, I’ll look back and feel really good about what we’ve done. We’re not there yet, but we’re getting close.

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