Blue Islands ATR 72-500

Blue Islands Suspends Flights As Jersey Funding Falls Through

Blue Islands, the Jersey- and Guernsey-based regional carrier, has suspended all operations with immediate effect (November 14, 2025) after the Government of Jersey declined further financial support for its low-density routes. The ATR 72 operator grounded its fleet and canceled all flights, instructing customers not to travel to the airport while it evaluates options such as restructuring or a potential sale. The move ends roughly 26 years of service connecting the Channel Islands to the UK mainland.

The routes now without service

Until the suspension, Blue Islands linked Jersey (JER) and Guernsey (GCI) with several UK cities, in addition to inter-island flying:

The grounding removes an estimated ~9,200 weekly seats and roughly ~136 flights per month from the UK–Channel Islands market—an outsized hit in a niche segment where thin margins already make frequent service hard to sustain.

Knock-on effects for UK regional connectivity

With Blue Islands out, reliance will shift to Aurigny, easyJet, Loganair, and British Airways on overlapping city pairs. Expect a near-term squeeze on capacity and higher fares, particularly for residents and small businesses that depend on regular links to the mainland for health care, education, and commerce.

Blue Islands’ collapse—coming weeks after Eastern Airways ceased trading and following Flybe’s exits—reinforces the structural fragility of the UK regional ecosystem: high fixed costs, volatile demand, and inconsistent public support. The policy debate over long-term PSO-style funding for lifeline air services to peripheral communities will only intensify.

If you have a Blue Islands booking

  • Don’t go to the airport unless you already hold confirmed replacement tickets.

  • Seek refunds from your card issuer (chargeback) or from your travel agent if part of a package.

  • Check CAA guidance for affected travelers and use official channels only.

  • Review your travel insurance for Scheduled Airline Failure cover; keep receipts for replacement flights, hotels, and ground transport.

  • For essential trips between the islands and the UK, look quickly at Aurigny, easyJet, or British Airways, as alternative capacity will be tight.

Snapshot: Blue Islands

Item Detail
Base Jersey (JER) & Guernsey (GCI)
Fleet 5× ATR 72
Founded Roots to 1999; “Blue Islands” brand since 2006
CEO Rob Veron
Status Operations suspended effective Nov 14, 2025

Why funding matters on island routes

Inter-island and island-to-mainland services combine low winter demand with high unit costs (crew, maintenance, airport charges) and limited ability to upgauge. In many European markets, governments deploy Public Service Obligations (PSOs) or multi-year support frameworks to stabilize schedules and pricing. Without predictable support, operators face repeated cash crunches—leading to service gaps, fare volatility, and recurring market exits.

Bottom line

Blue Islands’ immediate shutdown strands thousands of bookings and cuts crucial capacity between the Channel Islands and the UK. In the short run, alternative carriers will backfill some seats—but likely at higher prices and lower frequency. In the long run, the UK faces a choice: either formalize durable PSO-style support for lifeline routes or accept periodic airline failures and connectivity shocks for island communities.