Blue Islands Collapse Leaves Future Flights in Limbo

In a sudden and surprising move, Channel Islands regional carrier Blue Islands in Jersey has suspended all operations, leaving future flight bookings stranded as customers scramble for refunds. The airline's shutdown marks a tough moment for travelers and highlights ongoing fragility within small-scale aviation.

On 14 November 2025, Blue Islands announced it would immediately suspend trading and cancel all future flights.

A company spokesperson expressed “deep regret” for the disruption, and urged customers not to travel to the airport unless they have made alternate arrangements.

Blue Islands has reportedly run into serious financial trouble. While the airline had received government backing in past years, including during the COVID-19 pandemic, the latest announcement suggests that further support was not forthcoming.

Travel experts are now clarifying what this means for those who paid for tickets for flights that will never happen.

Refunds: What Travelers Can Expect

Despite its terms and conditions stating that tickets are generally non-refundable, Blue Islands’ collapse has triggered exceptions. Under its current Conditions of Carriage, Article 10 — “Involuntary refunds” — means customers are eligible to get back “an amount equal to the fare paid” for unused tickets when a flight is cancelled by the airline.

Simon Calder, a well-known travel expert, told ITV News that many customers should be able to get their money back, especially if they paid by credit or debit card.

On credit cards, consumers may use Section 75 of the UK Consumer Credit Act, which can make the card provider jointly liable for undelivered services.

For those who used a debit card, a chargeback — essentially reversing the transaction — is another possible route.

However, the process may be more complicated for those who booked through travel agents, holiday companies, or third-party booking platforms. ITVX

The airline itself advises customers to contact their bank or card issuer (if they booked directly) or to reach out to the travel agent or provider if they booked via a third party.

Some forms of payment may be less protected: for instance, Blue Islands’ gift vouchers are unlikely to be refunded easily, and could rank lower in the liquidation process.

Blue Islands’ own flight disruption guidance confirms that canceled flights fall under their refund policy: the airline asks affected travelers to follow instructions on its website to begin a refund claim.

What’s Next?

With all flights grounded, the company says it is “considering its options.”

In the meantime, affected passengers are being urged to act quickly. If you paid by credit or debit card, contact your bank or card issuer and ask about chargeback or Section 75 protection. If you booked through an agent, contact them to start a refund enquiry.

Travel expert Simon Calder also cautioned that while many customers will likely secure refunds, some of the replacement flights they need to re-book may be more expensive than their original

Bottom line: Blue Islands’ sudden suspension has left thousands of customers in limbo, but those who paid by secured card methods have a good shot at getting their money back. It’s a chaotic time, with some relief possibly on the way, as long as people act fast.