Blue Islands Collapse: Staff Laid Off, Passengers Stranded

Nearly 100 employees of Blue Islands, the regional carrier of the Channel Islands, have been laid off after the regional carrier abruptly shut down operations.

The airline ceased trading on November 14, 2025, suspending all flights without warning due to financial problems that had intensified throughout the year.

The closure left approximately 1,200 passengers stranded and resulted in the cancellation of an estimated 21,000 upcoming bookings. The sudden loss of Blue Islands removed crucial air links between the Channel Islands and the UK, severely affecting residents who rely on the carrier for essential travel, as well as the business and tourism sectors.

Although Loganair and Aurigny have launched temporary rescue services, there are still gaps in frequency and coverage.

Of the airline’s 110 employees, 12 have been retained short-term to help with shutdown administration, while the remaining staff have lost their jobs.

Financial disclosures show that Blue Islands had accumulated substantial debt. The carrier owed over £3.2 million ($4.1 million) to Ports of Jersey in landing charges and airport service fees. It also owed the States of Jersey close to £9 million ($11.7 million), including unpaid loans, deferred charges, and accrued interest.

Government support provided during the COVID-19 crisis was ultimately insufficient to restore the airline to financial stability.

As a result, Blue Islands entered liquidation, with Ernst & Young leading the process and managing the sale of remaining assets and the settlement of creditor claims.

Meanwhile, Spirit Airlines is undergoing a financial restructuring plan after years of strain and two bankruptcy filings.

Photo by Jared Murray on Unsplash