Eastern Airways, a UK airline, is on the verge of collapsing and has canceled its flights as it files for administration. The airline’s notice of intention to appoint an administrator serves as a legal signal of its impending entry into administration, providing a temporary freeze on creditor actions for ten days. The Civil Aviation Authority (CAA) confirmed the suspension of Eastern Airways’ operations.
Established in 1997, Eastern Airways operates domestic flights within the UK, serving airports such as Aberdeen, Humberside, London Gatwick, Newquay, Teesside International, and Wick. While it previously offered international flights to destinations like Paris, France, the airline carries approximately 1.3 million passengers annually. The Mirror reached out to Eastern Airways for comment but has not received a response.
Selina Chadha, Consumer & Markets Director at the CAA, advised passengers against heading to the airport for Eastern Airways flights as all operations have been canceled. Affected customers are urged to visit the CAA’s website for the latest updates.
For passengers with bookings through packaged holidays, their holiday provider will arrange alternative flights or provide full refunds. Those with standalone flight bookings may need to secure new flights if their trips are canceled. Options for compensation include making a claim through travel insurance policies covering scheduled airline failure or via debit/credit card providers.
In financial terms, Eastern Airways reported a net loss of £19.7 million for the 12 months leading to March 2024. The airline’s total debt increased to £25.97 million, while profits decreased to £454,000 from £1.55 million in the previous year.
This development follows the recent collapse of budget Icelandic airline Fly PLAY, which also entered administration, leading to the immediate cancellation of all flights. Meanwhile, Usher Travel Worldchoice, an independent travel agency, ceased trading earlier this month, with Director Gavin Morton expressing deep sadness over the decision to shut down.
In addition to these closures, Balkan Holidays Ltd, Jetline Travel, and Great Little Escapes LLP have also ceased operations this year. Stay updated on money-saving tips and exclusive offers by subscribing to the Mirror Money newsletter.