Not a good sign for UK regional airlines, the Jersey based carrier Blue Islands went into administration last night as this follows the earlier failure of Eastern Airways.
The bankruptcy appears to have been triggered by an £8.5 million loan from the Government of Jersey taken out during the pandemic, which was proving impossible to service.
Blue Islands announced late on Friday night that it was suspending operations and cancelling all flights after failing to secure rescue funding from Jersey's government.
In a statement on November 14, the carrier said:
“After 26 years of serving the Channel Islands, we deeply regret that Blue Islands has this evening suspended its operations."
“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."
“This has meant that we now need to suspend flying immediately whilst we consider the options available and how we can help our customers, staff and stakeholders.”
Earlier, Blue Islands was set to start flights from LBA to Southampton from March 2026 to link up with its operations in Guernsey and Jersey, but all flights have ceased with immediate effect.
The statement further added that all Blue Islands flights have been cancelled, and passengers expecting to fly should not go to the airport unless they have made alternative travel arrangements with another airline.
Loganair would be the obvious choice to take over the assets of Blue Islands, especially as it has an ATR72 fleet of its own. The two carriers launched a codeshare agreement in 2020 but it was terminated abruptly in July 2025 with no reason given.
U.K. CAA released a statement saying,
All Blue Islands-operated flights are now cancelled. Therefore, please do not go to the airport as flights will not be operating and customers are urged to make alternative travel arrangements. Further information is available on the Blue Islands website.
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 Blue Islands flights are cancelled. Blue Islands customers should visit the Civil Aviation Authority’s website for the latest information.”
For now, the Scottish regional airline Logainair is stepping in to take over some routes operated by Blue Islands which has suspended operations.
Aurigny said it was 'deeply saddened' by Blue Islands' closure and expressed 'heartfelt thoughts' with all its staff. The Guernsey airline announced arrangements it has made for displaced passengers:
"First, we've put temporary schedules in place between Southampton and Guernsey, and Guernsey and Jersey, initially for travel until Wednesday 19th of November.
"We're also offering special "Get Me Home" fares to help travellers affected - these can be booked via our website or app."
Blue Islands flew year-round from Jersey and/or Guernsey to Bristol, East Midlands, Exeter and Southampton. There was also a tag flight from Leeds Bradford to Southampton.
Over the summer it offered services to Dublin, Newcastle, Norwich and Paris. Despite the large number of routes, the Blue Islands fleet consisted of just five 70-seat ATR72 aircraft.
The airline was founded in 1999 as Le Cocq’s Air Link to supply perishable goods to Alderney from Bournemouth. In 2003 it rebranded as Rockhopper, and in 2006 as Blue Islands.
Between 2016 and 2020 it operated as a Flybe franchise, with Flybe handling all sales and marketing. Following the demise of Flybe the Blue Islands name was brought back.
Jersey’s Council of Ministers is reported to have been in talks with the airline all week but was not willing to invest further funds.
Last night Jersey’s Treasury Minister, Deputy Elaine Millar, 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.
“For those passengers based in Jersey, Government support is ready and available.
“Air connectivity is vital for our Island, and the contingency plans that have been prepared will mean that connections are swiftly reinstated, with priority given to those routes most essential to the provision of medical services. Ports of Jersey are providing advice to people who have been affected by the flight cancellations.
“Anyone who was due to travel with Blue Islands should not go to the airport and should instead rebook with an alternative airline."
