Eastern Airways, a UK airline, is facing imminent collapse and has canceled its flights as it moves towards administration. The company has lodged a notice of intention to appoint an administrator, a legal step indicating the imminent entry into administration and granting a temporary freeze to prevent creditors from taking legal action for ten days. The Civil Aviation Authority (CAA) has confirmed the suspension of the airline’s operations.
Established in 1997, Eastern Airways serves various domestic airports in the UK such as Aberdeen, Humberside, London Gatwick, Newquay, Teesside International, and Wick. It previously operated flights to international destinations, including Paris, France, and carries approximately 1.3 million passengers annually. The Civil Aviation Authority’s Consumer & Markets Director, Selina Chadha, has advised passengers not to go to the airport as all Eastern Airways flights are canceled, directing them to the CAA website for updates.
Passengers with bookings as part of a packaged holiday will be provided with alternative flights or a full refund by their holiday provider. Those whose flights are not part of a package may need to purchase new tickets if their travel is disrupted. Travel insurance with scheduled airline failure coverage or potential claims through debit or credit card providers may offer recourse in such situations.
Eastern Airways reported a net loss of £19.7 million for the 12 months ending in March 2024, with total debt increasing to £25.97 million and profits declining to £454,000 from £1.55 million the previous year. This development follows the recent collapse of budget Icelandic airline Fly PLAY, prompting the cancellation of all its flights. Usher Travel Worldchoice, an independent travel agent, also ceased trading, with Director Gavin Morton expressing profound sadness over the closure after decades in operation.
Other travel companies that have shut down this year include Balkan Holidays Ltd, Jetline Travel, and Great Little Escapes LLP. Subscribe to the Mirror Money newsletter to receive exclusive money-saving tips and top offers directly to your inbox.