Jersey/Guernsey – November 17, 2025 – Blue Islands, the regional airline serving the Channel Islands for approximately 26 years, has suspended all flight operations with immediate effect after the Government of Jersey declined to provide further financial support.
The Jersey- and Guernsey-based carrier grounded its fleet and canceled all scheduled services starting late on November 14, 2025, throwing thousands of bookings into limbo and raising concerns over regional connectivity.
In a statement, the airline confirmed that dialogue with the Government of Jersey concluded with officials stating they were "unable to provide further support." This decision left Blue Islands unable to continue trading, forcing an immediate suspension while the company evaluates options for restructuring or a possible sale.
Financial Pressure and Regional Fragility
The suspension highlights the persistent financial strain on the UK's regional airline sector. Blue Islands, which operated a small fleet of five ATR 72 turboprop aircraft, had been relying on external support. Reports indicate the airline still owed approximately £7 million (USD 9.2 million) from an £8.5 million (USD 11.2 million) loan it received from the government during the COVID-19 pandemic.
The collapse of Blue Islands comes shortly after fellow UK regional carrier Eastern Airways also suspended operations, underlining the increasing fragility of the market segment struggling with high fixed costs and low-demand, low-margin routes.
Source: Blue Islands
Connectivity Gap and Competitor Response
Blue Islands provided crucial lifeline services between Jersey and Guernsey and mainland UK airports, including Southampton, Bristol, Exeter, and East Midlands. The loss of the carrier removes an estimated 9,200 weekly seats from the market, which is expected to result in significantly reduced connectivity and higher airfares for residents and businesses across the Channel Islands.
Rival airlines have moved quickly to fill the sudden gap in service:
- Loganair announced immediate plans to establish a new permanent operating base in Jersey and launched new routes, including services connecting Jersey with Guernsey, Exeter, Bristol, and Southampton.
- Aurigny Air Services, the Guernsey-government owned carrier, also added capacity and increased frequencies on key inter-island routes and services to Southampton.
The suspension also posed a challenge for Skybus (United Kingdom), which had planned to wet-lease an ATR 72 aircraft from Blue Islands for a new Public Service Obligation (PSO) route from Newquay to London Gatwick. Skybus stated it remains committed to launching the service by the end of November and is securing alternative arrangements.
Advice for Affected Passengers
Passengers holding tickets with Blue Islands are advised not to travel to the airport, as operations have ceased. Since the airline has suspended trading, customers will need to seek refunds through their credit card providers via chargeback processes, or through their travel agents if the ticket was part of a package. The Civil Aviation Authority (CAA) is expected to publish official guidance for affected travelers.