While a number of European low-cost carriers have filed for bankruptcy and shut down operations earlier this year, the final weeks of autumn have been marked by a similar situation in Great Britain.
At the end of October, East Midlands-based Eastern Airways suddenly canceled all of its flights to Scotland and Northern England as it turned to courts to fight off liquidation in a situation that left hundreds of travelers in different corners of the country stranded and competitor Ryanair having to offer rescue fares.
Eastern Airways provided critical industry service to oil and gas hubs in the east of England as well as charter flights for several local sports teams based far from larger airports.
“Blue Islands has this evening suspended operations”
This news immediately caused shock among not just among affected travelers but also those living in isolated communities where such airlines are critical. While fellow regional airline Aurigny from the Guernsey Islands has spent the last week reassuring customers that it was on better financial footing that its competitor, another regional competitor is now also shutting down operations just a few weeks after Eastern Airways.
Based in the Channels Islands off the coast of France and officially part of Great Britain but not the United Kingdom, airline Blue Islands put out a late Nov. 14 statement confirming increasing rumors that it was canceling all flights and shutting down operations.
Related: A regional airline is reassuring travelers it will not go the way of bankrupt competitor
“After 26 years of serving the Channel Islands, we deeply regret that Blue Islands has this evening suspended its operations,” the statement reads. “After very constructive dialogue with Government of Jersey in recent months, including what we understood to have been ongoing assessments of the future options, we were informed this afternoon that they are unable to provide further support.”
The airline was largely subsidized by the local Government of Jersey and owed £7 million ($9.21 million USD) through a loan that the latter had made to maintain air service; as reported by local press, local politicians grew increasingly concerned that the airline was not bringing in enough funds to ever be able to make a dent on the loan or be independently profitable.
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Canceled Blue Islands flight? These are your refund and rebooking options
The statement put out by the airline does not get into the details of why the shutdown comes now but tells anyone with tickets booked on the airline to contact their credit card or other bank provider (this means that the bankrupt company itself will not be able to provide refunds).
These are the other airline bankruptcies in 2025:
- Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 bankruptcy for the second time on August 29, 2025.
- Ravn Alaska: Ceased operations in August 2025 after earlier Chapter 11 proceedings; shut down flights and folded into other operations.
- Corporate Air: Filed for Chapter 11 bankruptcy (restructuring) in September 2025 as part of a planned sale.
- Verijet: Filed for Chapter 7 bankruptcy in October 2025, canceled all flights, and ceased operations.
- Kachina Air, Inc.: Filed for Chapter 11 bankruptcy on October 24, 2025.
Travelers have been further told not to go to the airport for originally scheduled flights as none will be operating past Nov. 14 but potentially look for alternative options on Aurigny, the Blue Islands codeshare partner and other airline serving the Channel Islands.
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“We deeply regret the inconvenience that this will bring to your travel plans,” Blue Islands told travelers further. The airline provided dozens of flights between the Channel Islands of Jersey and Guernsey to mainland British cities such as Southampton, Exeter, East Midlands, Norwich, Newcastle and Leeds as well as Dublin in Ireland.
Related: Another regional airline files for Chapter 11 bankruptcy
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