1. What pricing objectives does Avelo pursue in its operation as an Ultra-Low Cost Carrier? Avelo has pricing objectives which provides the consumer "Hassle-Free travel. Everyday low fares." (Avelo Website, n.d.) "Avelo's pricing objectives include increasing volume so that every seat is filled, generating revenue to facilitate the operation of the airline, and managing for long-run profits." (K&H, 2023) Andrew Levy, CEO, scrutinized the airline industry, finding the competitive nature requires finding a differentiation other companies do not have to effectively target a market base. (Kerin & Hartley, 2023) Hence, establishing a large consumer base by offering extremely low fares to build their brand and increase awareness remains Avelo's focus to continue its differentiation approach. This is an important step because "setting your product or service's prices shouldn't be a haphazard decision focused entirely on profit. It should be a calculated, informed choice in which your business identity, brand, and financial stability are considered." (Heaslip, 2025, para. 3) Another strategic approach is by minimizing operational costs, the airline can keep ticket prices low while still covering necessary expenses. Further, the airline distributes its fixed costs over many ticket purchases to spread out costs and promote operational efficiency. Penetration pricing at below market rates provides a demand and competition-oriented pricing approach to encourage consumers to try the budge