Avelo Airlines, one of several start-up, low-cost carriers that entered the U.S. aviation market last year, is trying to stay ahead of the pilot shortage with cash incentives.

The airline is looking to hire 120 new pilots this year and is offering a $20,000 sign-on bonus for any pilot who commits prior to June 1, 2022, the airline said in a release.

An initial $5,000 is paid after the pilot completes their orientation trips and the remaining $15,000 is paid at the completion of their first year with the company. The bonus is available to Captains and First Officers.

Avelo also said it would increase pay for pilots effective February 1 by almost 50 percent for Captains and 30 percent for First Officers.

"We're committed to attracting and retaining the industry's best pilots," Avelo CEO Andrew Levy said in a statement. "In addition to our enhanced pay scale, Avelo supports quality of life initiatives such as an additional $1,800 per month to help offset the cost of commuting. And, if a pilot chooses to live in base, they'll keep the $1,800 per month."

First-year Captain hourly pay rate increases from $135 to $200. Under the new scale, at five years of service Avelo Captains will earn $220 per hour. The first-year hourly pay rate for First Officers increases from $70 to $90 with an hourly rate of $140 at five years of service.

Fellow start-up Breeze Airways recently addressed the pilot shortage issue by saying it was recruiting pilots from Australia as part of the E-3 Visa Program with the United States.