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Channel Islands airline Blue Islands abruptly ceased operations on Friday night with all flights cancelled.
The Jersey-based carrier announced that services had been suspended “with immediate effect” and the company is “considering its options”.
The sudden move comes just weeks after regional carrier Eastern Airways fell into administration.
The Blue Islands year-round network connected the Channel Islands with mainland airports such as Southampton, Bristol, Exeter, and East Midlands along with summer routes to Leeds Bradford, Newcastle, Norwich, Dublin and Paris together with inter-island connections.
Blue Islands operated a fleet of 70-seat ATR 72 turboprop aircraft and employed around 100 staff.
A statement issued by the airline said: "All Blue Islands flights have been cancelled. Passengers expecting to fly should not go to the airport unless they have made alternative travel arrangements with another airline.”
A spokesperson added: “After 26 years of serving the Channel Islands, we deeply regret that Blue Islands has this evening (Friday) 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.”
In advice to passengers, Blue Islands issued three options:
Jersey airport said: “Airlines continue to operate to and from Jersey, including services to London Gatwick, Heathrow, Manchester, and Birmingham. These airports have good onward rail and road links to destinations such as Bristol, Exeter and Southampton.
“We are working with the government of Jersey to enact contingency plans to ensure that Jersey has reliable and sustainable air links for the long term.
"From Sunday 16 November 2025, Loganair will begin operating a schedule of flights to and from Jersey, initially between Jersey and Guernsey, and Jersey and Southampton, with other destinations to follow soon after.
"Airlines continue to operate to and from Jersey, including services to London Gatwick, Heathrow, Manchester, and Birmingham. These airports have good onward rail and road links to destinations such as Bristol, Exeter, and Southampton."
A Jersey government statement said it was working with Ports of Jersey to implement contingency plans which will deliver replacement services.
Civil Aviation authority consumer & markets director Selina Chadha 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.”