Kenai Aviation ceased all flight operations on November 3, 2025, citing financial insolvency due to pandemic-related debt and operational setbacks. The shutdown leaves eight Alaskan communities without service, including the critical Anchorage–Unalakleet route.
Kenai Aviation, a regional carrier based in Kenai, Alaska, announced its immediate shutdown via a Facebook post, stating it was “financially insolvent” and would stop flying by the end of the day. The airline had been struggling with debt accrued during the COVID-19 pandemic and faced compounding issues when its only Beech Super King Air aircraft was grounded for maintenance in August 2025. This disruption forced the suspension of its Anchorage–Unalakleetroute, which Kenai operated without federal subsidy under the Essential Air Service (EAS) program.
Kenai’s fleet included Beech Super King Airs and Tecnam Traveller P2012s, serving eight remote communities across Alaska. The Anchorage–Unalakleet route was particularly vital, as Kenai was the only scheduled passenger airline operating it.
With the airline’s exit, residents must now travel to Nome to reach Anchorage, significantly complicating access to medical care, supplies, and connections.
The U.S. Department of Transportation had reopened bidding for the EAS contract in late August, anticipating a new carrier selection by October. However, the ongoing government shutdown has delayed that decision, leaving affected communities in limbo. Local advocates are urging swift federal action to restore service.
Kenai Aviation was purchased in 2018 by brothers Joel and Jacob Caldwell (above), who have not publicly commented since the shutdown. The closure underscores the financial fragility of small regional carriers in Alaska, where harsh conditions, limited infrastructure, and low passenger volumes make operations uniquely challenging.
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