Over 55,000 passengers have used the Salem airport in the year since the return of commercial air service, according to the airport’s sole carrier Avelo Airlines. In that time, the airline has used a third of the $1.2 million set aside to subsidize below-target ticket sales using private and federal funds.Avelo launched in October 2023 with fanfare from city and business leadership who had worked to bring commercial flights to Salem for the first time in 15 years. The multi-million dollar effort involved over $2 million in city funds for terminal renovations and new equipment.To help draw in commercial service, the airport received an $850,000 federal grant and a $350,000 grant from Travel Salem using private donations to use for minimum revenue guarantees, money airlines can apply for if they fail to meet targets during the first few years of operation.So far, Avelo has requested about $446,000 of the $1.2 million total in the first 12 months, said Trevor Smith, city spokesman, in a Monday email to Salem Reporter. Halfway through the year, in July, they had used $189,423 of the funds. The funds are intended to be used within the first two years of operation, Smith said.“After these funds are used, we will continue to look for available grant opportunities and funding partnerships to help keep commercial air service growing in our community,” he said.On Monday, the Salem City Council’s agenda included a review of a decision which will allow Avelo to use the remainder of those same funds, $902,500, when requested. Councilors didn’t vote on the item, but received an update as part of a regular report on major city contracts. The airline is performing well, said Kara Kuh, chief marketing officer at Travel Salem, in an email to Salem Reporter. “What’s more, nearly 47% of passengers who flew during the first six months of service were visitors, which is significant in terms of spurring local economic development and growing tourism in the region,” she said.Kuh said Travel Salem looks forward to continued growth with Avelo.“Based on the success of the service thus far, we fully expect Avelo to continue to operate” in Salem once the minimum revenue guarantee has expired, she said.  In June, the city approved spending $621,000 from the general fund this year for employees to sustain airport operations, included in this year’s budget. The airport has historically supported its own operations in a separate fund through revenue from ground leases and parking, but the costs of staffing increased with the return of commercial air service. Avelo currently offers weekly flights to and from Las Vegas and Burbank. It cut a newer route between Salem and Sonoma, northern California, in September just months after launch. The airline announced the cut in July, citing low demand. That route was not eligible for minimum revenue guarantees. At the time, spokeswoman Madison Jones said flights on the other two routes were over 80% full. Avelo did not respond to questions from Salem Reporter Tuesday about updated passenger numbers and the viability of services without minimum revenue guarantees. An Oct. 7 press release from the airline celebrated its first anniversary in Salem. “Avelo has made flying to Southern California and Las Vegas from this region easier, faster, and more reliable than ever. We look forward to continuing to inspire more travel in the months to come,” CEO Andrew Levy said in a statement. Contact reporter Abbey McDonald: [email protected] or 503-575-1251. A MOMENT MORE, PLEASE– If you found this story useful, consider subscribing to Salem Reporter if you don’t already. Work such as this, done by local professionals, depends on community support from subscribers. Please take a moment and sign up now – easy and secure: SUBSCRIBE. The post One year in, Avelo has received $446k from grant to subsidize Salem operations appeared first on Salem Reporter.