Ravn Alaska shuts down, ending 77 years of essential air service
August 19, 2025
Ravn Alaska, once the state’s largest regional airline, has ceased operations and filed for bankruptcy, ending decades of service to rural communities across the state.
The company, which operated under various names since 1948, stopped flying on August 5. A short message posted on its website confirms the shutdown:
“We appreciate the years of service we were able to provide to Alaska communities. While we are no longer operating flights in Alaska, we’re grateful for the trust you placed in us during our time serving the region.”
Ravn Alaska’s pandemic collapse and relaunch
Ravn first filed for Chapter 11 bankruptcy in April 2020, grounding all flights at the height of the COVID-19 pandemic.
At the time, the carrier cited nearly $90 million in debt and declining demand for travel.
Later that year, a new ownership group, FLOAT Alaska, LLC, which also owns New Pacific Airlines, acquired parts of the business. It relaunched scheduled operations under the Ravn Alaska name.
The reborn airline resumed service in November 2020, operating De Havilland Dash-8 aircraft on routes connecting Anchorage with regional hubs and smaller communities.
Ravn Alaska’s financial struggles deepen
Despite the restart, the carrier continued to face challenges. Inflation, rising fuel costs, labour shortages, and competition strained operations.
In February 2024, Ravn laid off about 130 employees—roughly one-third of its workforce—and scaled back its network.
In December 2024, Ravn notified the US Department of Transportation that it would terminate unsubsidised scheduled air service between Anchorage and St. Mary’s and Unalakleet effective April 2025.
“Despite Ravn’s best efforts, the significant increase in operational costs over the past several years has made it economically untenable for Ravn to continue to operate service between ANC and KSM at levels reasonably aligned with the Department’s determination of EAS levels for the community,” Ravn wrote in the filing.
Lease complications added to the airline’s difficulties. Ravn lost access to several of its Dash-8s after its Canadian lessor, Avmax, declined to extend aircraft agreements. The airline described it as a “significant and unanticipated” fleet reduction.
By summer 2025, the cutbacks left Ravn with limited operations.
After 77 Years: the last flight of Ravn
Ravn traces its roots to Economy Helicopters, founded in June 1948 by Carl Brady.
Over the decades, the company has seen many changes in ownership, names and fleets, but has consistently addressed Alaska’s need for air services connecting Anchorage to towns that are difficult to reach with other forms of transport.
On August 5, the company operated its final service. Flight 308, operated on a Dash-8 aircraft, departed Anchorage at 3:40 pm and landed in Valdez three minutes early at 4:15 pm. The short hop effectively ended nearly 77 years of the company’s history in Alaska.
CEO Tom Hsieh confirmed the shutdown but provided no details on restructuring or employee severance. The airline was reportedly folded into New Pacific Airlines, and the airline’s website directs visitors there. However, neither company has announced any plans for continued operations within Alaska.
New Pacific Airlines originally began with plans to offer flights to Asia connecting through Anchorage. It launched scheduled passenger flights from Ontario International Airport (ONT) in California in July 2023, where it briefly served Las Vegas, Reno and Nashville. However, the airline quit scheduled services in March 2024 and currently only operates Boeing 757 charter flights.
Impact of Ravn’s closure on Alaskan communities
Ravn’s closure leaves many Alaskan communities without a primary air link. The carrier had long served as a lifeline to towns without road access, providing passenger flights as well as cargo, mail, and medical transport.
Other regional operators, including Aleutian Airways and Kenai Aviation, have begun moving to fill the gap. But the loss raises concerns over long-term air connectivity, particularly as federal Essential Air Service subsidies face potential budget cuts.
As reported by Alaska News Source, in the White House Office of Management and Budget’s fiscal year 2026 discretionary budget request, the Trump administration proposed a $308 million reduction to Essential Air Service funding. That represents a reduction of over 50%. Rural Alaska is highly dependent on these subsidies for air connectivity.
The Trump administration explained the cut in the budget request, stating:
“The EAS program funnels taxpayer dollars to airlines to subsidise half-empty flights from airports that are within easy commuting distance from each other, while also failing to effectively assist most rural air travellers. Spending on programs is out of control, more than doubling between 2021 and 2025. The Budget reins in EAS subsidies by proposing a mix of reforms to adjust eligibility and subsidy rates to help rural communities’ air transportation needs in a more sustainable manner. This would save American taxpayers over $300 million from the 2025 level.”
