Major airline plunges into bankruptcy – all flights cancelled | World | News
After 77 years in the sky, a much-loved airline has been forced into bankruptcy. The regional carrier Ravn Alaska, which made its first flight on June 20, 1948, was once a vital lifeline for many of Alaska’s rural communities.
However, the carrier unexpectedly announced that it will cease all operations in August 2025 and join parent company New Pacific Airlines. “We appreciate the service we have been able to provide to Alaska communities over the years,” the statement said. “Although we no longer operate flights in Alaska, we are grateful for the trust you have placed in us throughout our time serving the region.”
Approximately 270 employees remained unemployed, while communities and airports were given almost no notice that Ravn was terminating all its services.
The company did not explain when and why it ceased operations. Its last flight from Valdez to Anchorage occurred on August 5, 2025, marking the end of its service.
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The announcement comes after a tumultuous period for Ravn Alaska. In February 2024, the airline laid off around 130 employees (more than a third of its workforce), citing inflation, labor shortages and “unexpected competition” as major challenges.
At the time, CEO Rob McKinny told staff that despite efforts to adjust schedules and prices, the airline was still “not meeting its profitability target.”
Federal documents show Ravn filed a notice with the U.S. Department of Transportation on Dec. 10, 2024, that it would operate between Anchorage and St. Louis starting April 29, 2025, citing increased operational costs. It shows him reporting a plan to end unsubsidized scheduled flights between St. Mary’s and Unalakleet.
“Despite Ravn’s best efforts, the significant increase in operational costs over the past several years has made it economically untenable for Ravn to continue to provide service between ANC and KSM at levels reasonably compatible with the Department’s determination of EAS levels for the community,” Ravn wrote in its December filing.
On January 26, 2026, Ravn Alaska’s parent company, Float Alaska, filed for Chapter 11 bankruptcy protection, reporting assets ranging from $1 million to $10 million and liabilities ranging from $10 million to $50 million.
