UK airline ceases all flights and leaves thousands of passengers stranded

Blue Islands, a Channel Islands-based airline, has ceased operations, immediately cancelling all flights and stranding thousands of passengers. The carrier, which operated a fleet of five ATR-72 aircraft, had been serving destinations across the British Isles for two decades. This closure follows Eastern Airways' collapse less than three weeks prior, highlighting the financial pressures facing regional airlines.

The Jersey government had previously provided Blue Islands with a substantial £8.5 million funding package, but £7 million remained unpaid as of August 2025, indicating the severity of the airline's financial difficulties. Jersey's Treasury and Resources Minister expressed disappointment and assured support for affected employees and passengers. The government is actively working with another airline to ensure continued reliable air links for the island.

In response to the Blue Islands' collapse, Aurigny and Loganair are adding extra flights to their schedules to accommodate stranded passengers. Loganair is introducing services from Jersey to Guernsey, Exeter, Bristol, and Southampton, while Aurigny has launched flights for the Southampton to Guernsey and Guernsey to Jersey routes. Both airlines are offering special fares to assist affected passengers.

The sudden cessation of Blue Islands' operations underscores the vulnerability of regional airlines to economic pressures and the importance of maintaining essential air links for island communities. The immediate focus is on assisting stranded passengers and ensuring continued connectivity for the Channel Islands.