Another UK regional airline collapses: Blue Islands suspends operations with immediate effect, evaluating next steps
November 15, 2025
Jersey-based regional carrier, Blue Islands, suspended operations on Friday evening. The carrier, which has been struggling particularly since the COVID-19 pandemic, is unable to continue operating as it considers its next steps.
The carrier says that the decision was taken after the Government of Jersey, a self-governing dependency of the United Kingdom, said it was “unable to provide further support.” The airline has a fleet of five ATR 72-500 aircraft.
In a statement, the company said that the Government informed them of their inability to provide further support on Friday afternoon. “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,” a spokesperson clarified.
It is the second UK regional airline to suspend operations in under a month, after Eastern Airways ceased flying at the end of October.
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Passengers should not go to the airport
Blue Islands said in both its statement to the media and in a display on its websites that passengers with a ticket should not go to the airport. Instead, passengers should book alternative arrangements and contact banks or card providers for all bookings made with Blue Islands.
For those made with codeshare partner Aurigny but on a Blue Islands flight, the company says that they should check with the former as “some flights may still be operating.”
Finally, for bookings made through a travel or holiday agency, contact should be with the respective company.
Unable to pay back the COVID-19 loan
Jersey has relied on the airline for about 26 years to provide vital connectivity between the Island and the UK mainland. Though launched as Blue Islands in 2006, the company’s origins date back to 1999 when it flew produce between England and Jersey as Le Cocq’s Air Link.
| Year | Event |
|---|---|
| 1999 | Founded as Le Cocq’s Air Link — produce flights between England and Jersey. |
| 2003 | Renamed to Rockhopper. |
| 2004 | Acquired by Healthspan. |
| 2006 | Renamed to Blue Islands. |
| 2011 | Rob Veron appointed CEO. |
| 2016 | Franchise deal with Flybe — Blue Islands aircraft repainted in Flybe branding, tickets via Flybe website. |
| 2020 | Flybe enters administration and the franchise agreement ends. |
| 2020 | Government of Jersey issues a £8.5 million loan to resume regular operations. |
| 2025 | Blue Islands ceases operations. |
It emerged earlier this year that the company had only paid back 17% of its COVID-19 loan. After five years, the Jersey Evening Post wrote in July, Blue Islands still had not paid back one-fifth of its £8.5 million loan.
The Government of Jersey is looking for long-term alternatives
As it refused to provide additional support, Blue Islands was unable to continue operations. On Friday evening, Jersey’s Treasury Minister, Deputy Elaine Millar said that she was “saddened” by the news.
She expressed her sympathy for those whose travel plans had been disrupted and for the company employees. Millar added that those based in Jersey would have Government support “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,” she continued.
The Government also said that it is “working with an alternative airline” to ensure the Islands’ long-term connectivity, but did not comment further.
Featured image: Christian Palent | stock.adobe.com
