If you’ve been following travel news this week, you might have seen the headlines about Blue Islands. On Thursday evening, 14 November, the Channel Islands-based airline announced it was suspending all operations with immediate effect.
The final flight landed at Jersey Airport at 7:40pm. By 10pm, the website had been updated: all future flights were cancelled, and passengers with bookings were directed to contact their banks about refunds.
Here’s what happened, what travellers need to know about getting their money back, and what options exist for Channel Islands travel now.
What Happened
Blue Islands had been operating for 26 years, connecting Jersey, Guernsey, and Alderney to mainland UK airports including Southampton, Bristol, and Exeter. The airline employed around 110 people and operated five ATR turboprop aircraft.
The airline had been experiencing financial difficulties. It owed the Jersey government £9.1 million in outstanding loans (much of it from COVID-era support) and £3.2 million to Ports of Jersey in unpaid landing fees. Two of its aircraft had been impounded at Guernsey Airport.
On the afternoon of 14 November, after discussions with Jersey government officials, Blue Islands was informed that no further financial support would be available. The company announced it would cease operations immediately and enter liquidation. Ernst & Young was appointed to manage the wind-down process.
Over the weekend, 98 of the airline’s 110 staff members were made redundant.
The Impact
Over 21,000 future bookings were cancelled, affecting families, business travellers, medical patients, and others who had planned to travel to or from the Channel Islands.
Travel journalist Simon Calder noted that most passengers who booked directly with Blue Islands should be able to recover their money through credit or debit card protections, though replacement flights may be priced differently than the original bookings.
The Channel Islands are now served by two carriers: Aurigny (Guernsey’s government-owned airline) and Loganair (a Scottish regional carrier). Both airlines have added capacity to their schedules.
How the Response Unfolded
Within 36 hours, Loganair announced it would begin operating flights from Jersey to Guernsey, Southampton, Exeter, and Bristol starting 16 November. The airline offered these at special fares to help affected passengers.
Luke Farajallah, Loganair’s CEO, told the BBC that the airline plans to establish a permanent operating base in Jersey.
Aurigny increased its schedule as well, adding up to three flights daily between Guernsey and Southampton, and up to two daily services between Guernsey and Jersey through 17 December.
Both airlines have indicated they’re interested in hiring former Blue Islands staff.
How Refunds Work
If you have clients who booked with Blue Islands, here’s what they need to know about getting their money back:
Credit Card Bookings (£100+)
Protected under Section 75 of the UK Consumer Credit Act 1974. Passengers should contact their card provider and explain that the airline has ceased trading. The card issuer should provide a full refund.
Debit Card Bookings
Protected through the chargeback scheme (Visa/Mastercard). Passengers should request a chargeback through their bank. This protection isn’t limited to purchases over £100, but there are time limits (usually 120 days).
Some banks may request a “Negative Response Letter” from the Civil Aviation Authority confirming the airline has ceased operations. The CAA issued this letter on 19 November.
Bookings Through Travel Agents
Protection depends on the agent’s terms and conditions. Passengers should contact their agent first. Some travel insurance policies include Scheduled Airline Failure Insurance (SAFI), which may cover the cost.
Aurigny Codeshare Bookings
Some flights may still operate. Passengers should contact Aurigny directly to confirm their flight status. In some cases, Aurigny may honour the booking or offer an alternative.
Gift Vouchers
No protection is available. Passengers can join the creditor list during liquidation.
Refunds often take around 8-12 weeks, so it’s helpful to set expectations early.
The Broader Context
Blue Islands is the fifth UK travel company to cease operations in 2025. Great Little Escapes ceased trading in June, Jetline Travel in March, Play Airlines in September, and Eastern Airways in October.
Regional airlines often operate on tight margins, so even small changes in costs or revenue can create financial pressure quickly.
It’s worth noting that ATOL (Air Travel Organiser’s Licence) protection applies to package holidays booked through licensed tour operators. If a company with ATOL protection fails, the CAA ensures travellers are either repatriated or refunded. Scheduled airlines like Blue Islands operate outside this system, which means passengers rely on credit card protections and travel insurance for recovery.
When booking flight-only tickets with regional carriers, paying by credit or debit card and checking that travel insurance includes Scheduled Airline Failure Insurance (SAFI) can provide additional protection.
Helpful Steps If You Have Affected Clients
If you have clients with Blue Islands bookings, here are some things that might be helpful:
It can be worth reviewing your system for any Blue Islands reservations and reaching out to those clients to:
- Confirm their travel plans
- Share information about refund options
- Discuss rebooking on Loganair or Aurigny
If clients booked through Aurigny but were scheduled to fly on a Blue Islands aircraft, it might be helpful to contact Aurigny to confirm flight status.
You can guide clients through realistic timelines so expectations feel clear – refunds often take around 8-12 weeks to process.
For clients planning Channel Islands travel, Loganair and Aurigny are both operating services. Loganair’s rescue flights are scheduled through at least mid-December, with permanent Jersey base operations planned for 2026.
Final Thoughts
Blue Islands’ closure affected thousands of travellers, but refund mechanisms exist through credit and debit card protections. Alternative carriers have added capacity, and travellers can still reach the Channel Islands through Loganair and Aurigny.
If clients have questions about affected bookings or need help arranging Channel Islands travel, the information is available to guide them through their options.
