Business
Avelo Airlines Faces Backlash for Aiding Trump’s Deportation Campaign
In the four years since its first flight, Avelo Airlines has gained loyal customers by serving smaller cities like New Haven, Conn., and Burbank, Calif.
Now, it has a new, very different line of business. It is running deportation flights for the Trump administration.
Despite weeks of protests from customers and elected officials, Avelo’s first flight for Immigrations and Customs Enforcement appears to have departed on Monday morning from Mesa, Ariz., according to data from the flight-tracking services FlightAware and Flightradar24.
According to FlightAware, the plane is expected to arrive in the early afternoon at Alexandria International Airport in Louisiana, one of five locations where ICE conducts regular flights. Avelo declined to comment on the flight and ICE did not respond to multiple requests for comment.
The airline’s decision to support President Trump’s effort to accelerate deportations of immigrants is unusual and risky. ICE outsources many flights, but they are usually operated by little-known charter airlines. Commercial carriers typically avoid this kind of work so as not to wade into politics and upset customers or employees.
The risks for Avelo are perhaps even greater because a large proportion of its flights either land or take off from cities where most people are progressives or centrists who are much less likely to support Mr. Trump’s hard-line immigration policies. More than 90 percent of the airline’s flights arrived or departed from coastal states last year, according to Cirium, an aviation data firm. Nearly one in four flew to or from New Haven.
“This is really fraught, really risky,” said Alison Taylor, a professor at the New York University Stern School of Business who focuses on corporate ethics and responsibility. “The headlines and the general human aspect of this is not playing very well.”
But Avelo, which is backed by private investors and run by executives who came from larger airlines, is struggling financially.
The money the company stands to make from ICE flights is too good to pass up, the airline’s founder and chief executive, Andrew Levy, said last month in an internal email, a copy of which was reviewed by The New York Times. The flights, he said, would help to stabilize Avelo’s finances as the airline faced more competition, particularly in and near New Haven, which is home to Yale and where the airline operates more than a dozen flights a day.
“After extensive deliberations with our board of directors and our senior leaders, we concluded this new opportunity was too valuable not to pursue,” Mr. Levy wrote in the email on April 3, a day after Avelo signed the agreement with ICE.
While the military carries out some deportation flights, ICE relies heavily on private airlines. There is little public information about those flights, which ICE primarily arranges through a broker, CSI Aviation, said Tom Cartwright, a retired banking executive who has tracked the flights for years as a volunteer with Witness at the Border, an immigrants rights group. Most are operated by two small charter airlines, GlobalX Air and Eastern Air Express, he said.
GlobalX started operations in 2021 and conducts flights for the federal government, college basketball teams, casinos, tour operators and others. It has grown rapidly and brought in $220 million in revenue last year but is not yet profitable. This year, it has operated deportation flights to Brazil and El Salvador. Eastern Air Express is part of Eastern Airlines, a privately held company.
GlobalX and Eastern Airlines did not respond to requests for comment.
Contracts for such flights provide airlines consistent revenue, and the business is much less vulnerable to changes in economic conditions than conventional passenger flights. By Mr. Cartwright’s count, which is based on a variety of sources, ICE operated nearly 8,000 flights over the year that ended in April, most of them within the United States. CSI Aviation alone was awarded hundreds of millions of dollars in ICE contracts in recent years, according to federal data.
Avelo’s decision last month to join in on those flights was met with a swift backlash.
Within days of Mr. Levy’s internal announcement, the New Haven Immigrants Coalition, a collection of groups that support immigrants’ rights, started a campaign to pressure Avelo to drop the flights. An online petition started by the coalition has gained more than 37,000 signatures. Protests also sprouted up near airports in Connecticut, Delaware, California and Florida served by Avelo.
The Democratic governors of Connecticut and Delaware denounced Avelo, while lawmakers in Connecticut and New York released proposals to withdraw state support, including a tax break on jet fuel purchases, from companies that work with ICE.
William Tong, the Democratic attorney general of Connecticut, demanded answers of Mr. Levy, who deferred to the federal government. In a statement last month, Mr. Tong called Mr. Levy’s response “insulting and condescending.”
The Association of Flight Attendants-CWA, a union that represents flight attendants at 20 airlines, including Avelo, raised concerns. The union noted that immigrants being deported by the Trump administration had been placed in restraints, which can make flight attendants’ jobs much more difficult.
“Having an entire flight of people handcuffed and shackled would hinder any evacuation and risk injury or death,” the union said in a statement. “It also impedes our ability to respond to a medical emergency, fire on board, decompression, etc. We cannot do our jobs in these conditions.”
Avelo said that under its deal with ICE, it would operate flights within the United States and abroad, using three Boeing 737-800 jets. To handle those flights, the airline opened a base at Mesa Gateway Airport and started hiring pilots, flight attendants and other staff.
In a statement, Mr. Levy, a former top executive at United Airlines and Allegiant Air, said the airline had not entered into the contract lightly.
“We realize this is a sensitive and complicated topic,” he said. “After significant deliberations, we determined this charter flying will provide us with the stability to continue expanding our core scheduled passenger service and keep our more than 1,100 crew members employed for years to come.”
The airline, which is based in Houston, said it had operated similar flights for the Biden administration. “When our country calls, our practice is to say yes,” it said in a separate statement.
In the email last month, Mr. Levy celebrated the fact that Avelo had nearly broken even in 2024, losing just $500,000 on $310 million in revenue. But the airline needs to raise more money from investors, he said. Performance this year has suffered as national consumer confidence has waned, and the airline is facing rising competition.
Avelo was seeking revenue that would be “immune from these issues,” Mr. Levy said in the email, and pursued charter flights, including for the federal government. To accommodate the ICE flights, the airline also scaled back its presence at an airport in Santa Rosa, Calif.
Avelo has raised more than $190 million, most of it in 2020 and 2022, according to PitchBook. Mr. Levy’s email said the airline hoped to secure new funding this summer.
Business
China’s Exports and Imports Set Records in April Amid High Energy Costs
China’s exports and imports each set monthly records in April, further cementing the country as the world’s leading trading nation as Beijing prepares to welcome President Trump for a summit next week with Xi Jinping, China’s leader.
China also ran a trade surplus — the excess of exports over imports — of $84.8 billion last month, according to data released on Saturday by the General Administration of Customs. However, that surplus did not set a record. The war in Iran and closure of the Strait of Hormuz pushed up the cost of imported oil and natural gas, causing China’s overall imports to increase slightly faster than exports.
The surplus in April keeps China on track for a third year of roughly trillion-dollar trade surpluses. China posted a $1.19 trillion trade surplus last year, easily breaking the world record of $992 billion that it had set the year before.
Mr. Trump is expected to press Mr. Xi to buy more American goods during their scheduled summit, part of his long-running effort to narrow China’s longtime trade surplus with the United States. But two recent court decisions overturning Mr. Trump’s tariffs on imports have eroded some of his leverage.
China’s exports to the United States jumped 11.3 percent last month compared to its shipments in April of last year, when President Trump’s “Liberation Day” tariffs produced a slump in imports from China.
The country’s imports from the United States rose only 9 percent in April this year. As a result, its trade surplus with the United States widened by 13 percent.
China has long used state-run purchasing collectives in big categories like farm goods and commercial aircraft to manage its trade with the United States, ensuring it sells three to five times as much as it buys. Mr. Trump and his advisers have criticized that imbalance.
Semiconductor exports doubled last month compared with April of last year. Chinese manufacturers cashed in on the artificial intelligence data center boom even though they cannot yet produce some of the fastest kinds of chips.
Overall exports of electronics and machinery were up 20 percent in April from a year earlier.
China acts in many ways as a shock absorber in global oil markets. Beijing buys more oil for its vast reserves when the price is low, then cuts back purchases when prices are high, as they were last month.
With oil prices spiking upward this spring, the tonnage of China’s oil imports dropped last month to its lowest level since July 2022, when Shanghai’s two-month Covid lockdown reduced demand. The lockdown hurt many of China’s oil-dependent industries.
Because prices rose faster last month than the tonnage declined, China’s overall bill for crude oil imports rose 13 percent from a year earlier. Rising oil prices helped drive China’s overall imports up 25.3 percent in April from a year ago, to a record $274.6 billion. Its exports surged 14.1 percent last month from a year earlier, to a record $359.4 billion.
China has been particularly successful this year in exporting electric cars as well as renewable energy products like wind turbines and solar panels. Exports of electric vehicles were up 52.8 percent last month from a year earlier.
China has been running large, and widening, trade surpluses over the past several years with most of the rest of the world. It has trade deficits with only a handful of countries, including those like Brazil and Australia which have very large commodity exports.
The European Union and many developing countries now find themselves with rapidly growing trade deficits with China. Practically all of them have run their own trade surpluses with the United States to fund their deficits with China, sometimes repackaging goods from China and shipping them on to the United States to do so.
China’s huge trade surpluses are not necessarily a sign of economic strength. They partly reflect very weak spending by Chinese households on imports and domestic goods alike after five years of sliding housing prices wiped out much of the savings of the middle class. This has prompted many families to scrimp on purchases like new cars, leaving Chinese automakers with more cars to export.
“The Chinese economy still demonstrates resilience in trade and industrial supply chains,” said Zhu Tian, an economics professor at the China Europe International Business School in Shanghai, after the release of the trade data.
But weak domestic spending and a leveling off in the trade surplus, he said, “suggest that economic growth will continue to face significant challenges for the rest of the year.”
Business
Disney’s ABC challenges FCC, escalating fight over free speech
Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.
Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump.
The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.
The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.
In its response this week to the FCC, Disney’s Houston television station raised the stakes in “The View” dispute, calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.
“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.
The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule,” for some programs, including “The View,” were no longer valid.
In a statement, the FCC said it would “review Disney’s assertion that ‘The View’ is a ‘bona fide news program’ and thus exempt from the political equal time rules,” according to a spokesperson.
“Decades ago, Congress passed a law that generally prohibits broadcast television programs from putting a thumb on the scale in favor of one political candidate over another,” the spokesperson said. “The equal time law encourages more speech and empowers voters to decide the outcome of elections.”
ABC’s strenuous arguments mark a turning point for the Disney-owned outlet.
In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it may have won.
But, over the past year, the network has weathered several storms, including a threat by Carr in September to punish ABC if it didn’t muzzle Kimmel for comments he made in the wake of conservative activist Charlie Kirk’s death. ABC briefly benched Kimmel to allow tensions to cool but, during the week his show was off the air, protesters loudly bashed Disney, demanding the legendary company stand up for free speech.
Thousands of consumers canceled their Disney+ and Hulu subscriptions in protest.
Protesters swarmed Hollywood Boulevard, protesting ABC’s move to bench Jimmy Kimmel in September over comments he made about the shooting of right-wing influencer Charlie Kirk.
(Genaro Molina/Los Angeles Times)
Some conservatives, including Sen. Ted Cruz (R-Texas) and commentator Ben Shapiro also criticized Carr’s handling of 1st Amendment issues.
“The days of the FCC as a paper tiger are numbered,” the FCC’s lone Democrat, Anna M. Gomez, said Friday in a statement. “What the public will remember is who complied in advance and who fought back. I’m glad Disney is choosing courage over capitulation.”
The high-profile dispute presents an early challenge for Disney Chief Executive Josh D’Amaro, who succeeded longtime chief Bob Iger in March.
ABC has asked for the full commission — a three member panel of Carr, Gomez and Commissioner Olivia Trusty, a Republican — to rule on the equal time exemption for “The View.” ABC said that, in 2002, it received a ruling from the FCC that granted the exemption, and the show’s format has not changed. “The View” is produced by ABC News.
“Some may dislike certain — or even most — of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views.”
ABC described a logistical nightmare of providing equal time for political opponents by pointing to California’s crowded primary field of gubernatorial candidates. “Affording equal time would mean accommodating over 60 legally qualified candidates, regardless of their perceived newsworthiness,” the station wrote.
The network said it makes show bookings based on newsworthiness, not partisan politics. It also noted it has invited politicians from both sides of the aisle to appear on “The View,” but some, including Vice President J.D. Vance, Health Secretary Robert F. Kennedy, Jr., Secretary of State Marco Rubio and entrepreneur Elon Musk, have declined the invitation.
The station also noted that, while the FCC has questioned the exemption for “The View,” the agency hasn’t shown interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.” The FCC also oversees radio station licenses.
“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.
On April 28, Carr called for a review of Disney’s broadcast licenses, including for the Houston station and KABC-TV in Los Angeles, two years before any of them were set to expire. The FCC said the review was part of the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.
In its Thursday petition, ABC said it had fully complied with the FCC’s request for documents related to its diversity and hiring.
The company has produced more than 11,000 pages of documents to comply with the request, Disney said.
The same week that Disney sent documents to the FCC, Kimmel made a joke on his show about Melania Trump, comparing her glow to that of “an expectant widow.” On April 25, a gunman tried to breach security at the Washington Hilton, where the first couple were on stage for the White House Correspondents’ Assn. Dinner. Shots were fired outside the ballroom.
Three days later, the FCC announced it was requiring early license renewal applications for the Disney-owned stations.
Business
U.S. Targets Iran’s Missile and Drone Program With Sanctions
The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.
The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.
China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.
The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.
“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.
The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.
U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.
The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.
Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.
“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.
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