Airline Blue Islands, based in the Channel Islands, has ceased operations and grounded all flights
Employing around 100 staff, the airline had been running services to destinations across the British Isles for over two decades.
Following the announcement, the airlines website told passengers that they "deeply regret the inconvenience that this will bring to your travel plans".
The company had a fleet of just five ATR-72 aircraft and was headquartered in Guernsey.
It worked predominantly to link Jersey with airports in England, such as Bristol, Exeter and Southampton, but also ran flights between Guernsey and Southampton, as well as an inter-island service to Jersey.
Blue Islands is the second regional airline to collapse in three weeks, following the folding of Eastern Airways on October 28.
The Blue Island website tells passengers: "We regret to inform you that Blue Islands has suspended trading effective on 14 November 2025. All future flights operated by Blue Islands have been cancelled.
Please do not travel to the airport unless you have made alternative travel arrangements. We deeply regret the inconvenience that this will bring to your travel plans."
Thousands of passengers who have advance bookings are urged to contact their bank or payment card provider if they booked directly with the company.
Elaine Millar, Jersey's minister for Treasury and Resources, said she was "saddened" by the news of the collapse, and said there was support available to those who had lost their jobs on the island.
She said backup measures were in place to ensure that residents and visitors could still access Jersey.
"The government is working with an alternative airline to ensure that Jersey has reliable and sustainable air links for the long term."
