Blue Islands has not paid back any more of its £8.5 million taxpayer-funded loan in the past eight months, it has emerged.

Last year, Express reported last year that the airline had repaid £1,425,653 of the capital sum as of 30 September 2024. 

But a recent response to a request made under the Freedom of Information Law shows that, as of 31 May 2025, the amount remains unchanged.

That means just 17% of the total loan has been repaid – despite the repayment period being more than halfway through.

It is understood that capital repayments and interest are made quarterly in accordance with the terms of the loan – but the latest figures reveal that Blue Islands hasn’t repaid a single penny of the loan in the last two quarters.

It previously emerged that the airline did not end up using all of the £10m of Government-backed credit issued almost three years ago in the depths of the pandemic.

The loan originally had to be repaid by the end of 2026 but, after the second wave of covid hit over the winter of 2020/21, the final repayment date was extended to 31 December 2028.

Express has contacted the government for comment on whether it considers Blue Islands to be in breach of the loan agreement, and if any actions are being considered in light of this.

It comes just one week after the Economic Development Minister said the government had made Blue Islands “very aware” of concerns regarding their service in recent months following multiple delays and cancellations.

Deputy Kirsten Morel said the issues had been caused by the airline’s limited fleet and “dramatic changes” to global supply chains leading to delays in getting replacement parts.

But the Minister said that introducing a compensation scheme for airline passengers without analysis would be “irresponsible” and could increase ticket prices or cause smaller carriers to go out of business.

Deputy Morel was responding to renewed calls for the government to close what the Jersey Consumer Council described as a “glaring gap” in protection for Channel Islands air passengers in the wake of the flight disruption.

Outbound flights operated by Channel-Islands-based carriers are currently not covered by compensation laws EU261 or UK261.

Blue Islands has also been contacted for comment.