UK airline collapses and cancels all flights immediately leaving passengers stranded

November 15, 2025 at 10:36 AM•2 min read•Ben Hurst

UK-based Blue Islands airline has ceased operations and cancelled all flights, leaving passengers stranded and disrupting regional connectivity, marking the second regional carrier collapse in under three weeks.

Key Points

1Blue Islands, a Channel Islands-based airline, has suspended operations and cancelled all flights.
2The airline operated a fleet of five ATR-72 aircraft, connecting Jersey and Guernsey with English airports.
3This is the second regional airline collapse in the UK within three weeks.
4Aurigny and Loganair are increasing schedules and offering discounted fares to assist stranded passengers.
5The Jersey government had previously granted Blue Islands an £8.5m funding package, with £7m remaining unsettled.
6Contingency plans are in place to re-establish air connections for the island.

Blue Islands, a Channel Islands-based airline, abruptly ceased operations, cancelling all flights and stranding passengers. The airline, operating a fleet of five ATR-72 aircraft, served routes connecting Jersey and Guernsey with English airports like Bristol, Exeter, and Southampton. This closure marks the second regional airline failure in the UK within three weeks, following Eastern Airways' collapse, highlighting the financial pressures facing smaller carriers. Passengers holding Blue Islands bookings are advised to contact their bank or payment card provider for refunds, while those booked through codeshare partner Aurigny are directed to contact Aurigny directly.

The Jersey government had previously extended an £8.5 million funding package to Blue Islands, with £7 million remaining unsettled as of August 2025. The sudden cessation of operations has drawn concern from Jersey's Treasury and Resources Minister, who expressed disappointment and assured support for affected employees and disrupted passengers. The minister emphasized the critical importance of air links for the island and indicated that contingency plans are in place to re-establish connections with an alternative airline.

In response to the Blue Islands collapse, Aurigny and Loganair are increasing their schedules to accommodate stranded passengers. Loganair is launching routes from Jersey to Guernsey, Exeter, Bristol, and Southampton, as well as Guernsey to Southampton, commencing Sunday. Aurigny is bolstering its services on the Southampton to Guernsey and Guernsey to Jersey routes. Both airlines are offering discounted fares on these routes to assist affected travelers.

The swift response from Aurigny and Loganair aims to mitigate the disruption caused by Blue Islands' sudden exit. The situation underscores the vulnerability of regional airlines to economic pressures and the importance of maintaining essential air connectivity for island communities. The long-term impact on air travel within the British Isles remains to be seen as the Jersey government seeks a sustainable solution for its air links.