Blue Islands suspended trading on 15 November 2025, and the UK Civil Aviation Authority (CAA) said all flights operated by the airline were cancelled. The CAA notice does not establish that a lack of government support caused the suspension. Eastern Airways had suspended operations earlier, on 27 October 2025, but that was a separate event.
What happened to Blue Islands?
In a notice dated 15 November 2025, the CAA said Blue Islands had suspended trading and that all Blue Islands-operated flights were cancelled. The regulator urged passengers not to go to the airport and directed customers to its website for updates. Read the CAA’s Blue Islands notice.
The CAA notice confirms the suspension and cancellations, but does not explain the airline’s finances or say that government support was requested, refused, or responsible for the outcome. The claim in the headline that a lack of government support was to blame should therefore be treated as an unverified causal explanation, not as a finding established by the CAA.
Why does the headline say “another” airline?
Eastern Airways is the earlier case: the CAA announced on 27 October 2025 that it had suspended operations. That notice and the later Blue Islands notice describe separate airline suspensions. See the CAA’s Eastern Airways notice.
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A suspension of operations should not be conflated with a temporary reduction in flights or routes. Nor do the two CAA notices, by themselves, establish the same cause, financial circumstances, or government-support history for both airlines.
What affected passengers should do
The CAA advises affected customers to make their own alternative travel arrangements. Check current information from the airline and regulator, then contact the company or payment provider relevant to your booking. The CAA’s airline-failure guidance explains possible routes to a refund or recovery.
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If you paid by credit card
If you booked directly with the airline and paid by credit card, you may have protection under Section 75 of the Consumer Credit Act 1974. Whether it applies depends on the purchase and circumstances, so contact your card issuer for advice.
If you paid by debit or charge card
You may be able to ask your card provider to pursue a chargeback. It is not guaranteed; ask the issuer what evidence it needs and what time limits apply.
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If you have travel insurance
Check whether your policy includes scheduled airline failure insurance (SAFI), either as a specific cover or within a broader travel policy. Not every policy includes it, and cover depends on the wording and circumstances. Contact the insurer before assuming a claim will be paid.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Regional routes and public support: useful context, not proof
Regional air links can be important to communities that rely on regular, reliable and affordable transport for healthcare, work, education and family life. The Scottish Parliament has described those needs in relation to island communities and air and ferry services. That context does not establish why Blue Islands suspended trading.
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In a separate Scottish route issue, Loganair announced reductions to some Inverness links in June 2026, citing concerns about route viability. In evidence to the Scottish Parliament on 24 June 2026, the airline described the affected services as having been loss-making over a sustained period, citing higher fuel, maintenance and airport costs alongside softer demand. Loganair said those routes had no direct public subsidy and that restoring reduced services depended on bridging funding. Transport Scotland separately announced funding to restore frequencies from 26 October 2026. These statements concern Loganair’s Inverness-to-island routes, not Blue Islands. Scottish Parliament material on the Loganair routes; Transport Scotland’s funding announcement.
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