Airline cancels flight after losing license, refunds available

In a string of bankruptcies and shutdowns of smaller regional airlines seen across the industry in the last months of 2025, British carrier Blue Islands serving the Channel Islands of Jersey and Guernsey announced that it would shut down operations in a move that left thousands of passengers stranded in different parts of Great Britain in November.

Due to the limited number of carriers that fly to the remote islands outside the United Kingdom mainland, competitors Aurigny and Scottish Loganair offered rescue fares and launched several flights to get stranded travelers back to their homes or the nearest hub.

Based out of Glasgow Airport (GLA), Loganair launched rescue flights from Guernsey into Jersey and Exeter, Bristol, and Southampton as well as Guernsey to Southampton throughout November that it eventually expanded into the following months with hopes of continuing to run it long-term.

"Disappointed not to be able to serve the Guernsey community": Loganair on denied Southampton flight license

While emergency permission for these flights was granted to get travelers stranded or with void tickets in the immediate weeks after the shutdown, the Guernsey government (the islands operate as as independent entities under the British government) has refused a license to allow Loganair to run a flight between Guernsey and Southampton on a permanent basis over issues of overcapacity with Aurigny.

States of Guernsey's Transport Licensing Authority President John Gallop put out a statement saying that "strong competition on these routes would likely lead to it being unviable for all operators in the longer term."

Related: Competitors offer rescue fares to travelers stranded by regional airline shutdown

"We are not surprised at this outcome; however, we remain resolutely of the belief that Loganair should play a part in serving the Channel Islands community beyond our base in Jersey," an airline representative said in a statement on the decision. "We are disappointed not to be able to serve the Guernsey community, with outbound and inbound flight opportunities that are complementary to our extensive network."

As a result of the decision which a spokesperson said the airline has chosen not to appeal, Loganair will begin issuing refunds for any tickets on that route booked after Jan. 15 which is the last date that it holds a license to run this flight.

Flight to Southampton on Loganair? What to know about refund options

Travelers with booked tickets whose fare class does not allow for an automatic refund can either wait to be contacted by the airline or reach out online through their flight booking. A spokesperson confirmed that anyone with disrupted travel has either already been or can soon expected to be fully refunded.

After Jan. 15, Aurigny will be the sole carrier operating the Southampton-Guernsey flight.

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While Loganair expressed "hope to serve [the community] in the future," its immediate plans are now to focus on their operations out of Jersey as well as its other destinations to many regional airports across the United Kingdom. Some of the smaller cities to which it flies include Aberdeen, Inverness, Tiree, Newquay, Barra and the Isle of Man.

Related: Another airline files for Chapter 7 bankruptcy, all flights canceled