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UK airline goes bust after 22 years cancelling ALL flights as passengers left stranded

A MAJOR UK airline has collapsed meaning all flights have been cancelled with immediate effect, scuppering scores of travel plans.

Blue Islands, based in the Channel Islands, with regular links to English airports, has grounded all of its aircraft as of yesterday.

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A Blue Islands aircraft arriving at East Midlands Airport from SouthamptonCredit: Getty

Blue Islands operated a fleet of five ATR-72 aircraftCredit: Getty

It’s the second regional airline to cease operations in a matter of weeks after Eastern Airways also went bust on October 28.

Meanwhile, Play Airlines also announced it was folding in September – and last year Spirit Airlines – a US low-cost carrier – filed for bankruptcy.

‘Deep regret’

Blue Islands announced yesterday it had stopped trading after more than two decades, and cancelled all current bookings.

It had a fleet of five ATR-72 aircraft and was headquartered in Guernsey – though mainly linked Jersey with airports in England.

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The airline’s website tells passengers: “We regret to inform you that Blue Islands has suspended trading effective on 14 November 2025.

All future flights operated by Blue Islands have been cancelled.

Please do not travel to the airport unless you have made alternative travel arrangements.

We deeply regret the inconvenience that this will bring to your travel plans.”

It went on to say: “For bookings made through our codeshare partner Aurigny but travelling on a Blue Islands flight, please contact Aurigny directly – some flights may still be operating.

“For bookings made through a travel agent or holiday company, please contact the company through whom you booked for advice and guidance.”

The Jersey government previously provided Blue Islands with £8.5million in funding – however, a report in August showing £7million was outstanding.

Elaine Millar, Jersey’s minister for Treasury and Resources, said: “I am saddened by the announcement that Blue Islands has suspended operations, and my immediate thoughts are with the people whose jobs have been affected and the passengers whose travel will be disrupted.”

She confirmed that “for those employees based in Jersey, government support is ready and available”.

She also said backup measures were already prepared to quickly restore connections.

“Government is working with an alternative airline to ensure that Jersey has reliable and sustainable air links for the long term,” she added.

Eastern Airways

Eastern Airways made 330 staff redundant after the airline filed a notice of intention to appoint an administrator on October 27.

Having launched in 1997, Eastern Airways was one of the UK’s remaining regional airlines, with services across England and Scotland and in the past, even offered flights to Europe.

Jamie Miller, partner at RSM UK and joint administrator, said: “It is extremely sad that such a long established and historically successful independent airline, one of the few remaining in the UK, has had to enter administration.

“The unexpected and sudden termination of Eastern’s KLM contract, along with other economic factors, unfortunately left the directors with no choice but to appoint administrators.”

RSM explained that Eastern Airways was operating four aircraft for KLM Cityhopper in Europe.

However, when the contract was terminated it meant that Eastern experienced “high fixed overheads and a staff base that has ultimately proved too high to be sustainable”.

What to do if youwere due to fly with Eastern Airways

LISA Minot, Head of Travel at The Sun, shares her advice…

Passengers stranded by the collapse of Eastern Airways have several options depending on their circumstances.

If you still need to fly, you’ll need to find – and pay – for an alternative flight with another airline.

Many airlines offer rescue fares when competitors go bust, offering lower prices for those who can prove they were due to fly with the airline that has failed.

Or if you can get the train, London and North Eastern Railway (LNER), ScotRail, TransPennine Express (TPE), and Northern Railway are offering free Standard Class travel to Eastern Airways staff and customers on Tuesday 28 and Wednesday 29 October, on suitable routes operated by each train company.

For those without scheduled airline failure insurance, you will sadly be left out of pocket.

If you are due to fly with Eastern Airways in the coming days, weeks or months, you should put a claim in straight away with your debit or credit card provider.

They should refund you without fuss.

For those who are due to fly with Eastern Airways as part of a package holiday they have bought from a travel agent or tour operator, your package holiday provider is obliged to find an alternative way for you to reach your destination or offer you a full refund.

The UK’s Civil Aviation Authority has the latest information on its website, caa.co.uk

Miller added: “At its peak, Eastern was an award-winning airline providing 200 flights per day.

“Its passengers included Queen Elizabeth and other members of the Royal Family, as well as Prime Ministers, Premier League Football Clubs and Formula 1 Teams and management.

“They also provided valuable services on public service obligation (PSO) routes and supported energy critical services to the oil and gas sector.”

Regional routes across the UK included Wick and Aberdeen in Scotland, and then Humberside, Teesside International, London Gatwick and Newquay.

But the airline also used to fly to Gibraltar and Paris Orly in France.

Miller said: “We would welcome any interest from potential alternative operators, or those who may have an interest in the underlying assets.”

For the 12 months to March 2024, Eastern Airways reported a net loss of £19.7million, which was £4.8million higher than 2023.

This meant that the company’s total debt rose to £25.97million.

At the time of the announcement, Selina Chadha, consumer & markets director at the UK Civil Aviation Authority, said: “We urge passengers planning to fly with this airline not to go to the airport as all Eastern Airways flights are cancelled.

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“Eastern Airways customers should visit the Civil Aviation Authority’s website for the latest information.”

Have you been affected by the collapse? Email ryan.merrifield@thesun.co.uk

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