Kenai Aviation Ceases Operations, Leaving Communities Stranded

KENAI, Alaska — Kenai Aviation, a regional air carrier, abruptly ceased operations on Monday due to financial insolvency, leaving many customers stranded and communities without essential air service.

Owner Joel Caldwell announced the closure in a statement on social media, citing overwhelming debt incurred during the COVID-19 pandemic as the primary cause. Caldwell described the situation as devastating, stating that the company had seen strong flight attendance but could not overcome its financial burdens.

Founded in 1959, Kenai Aviation had provided scheduled and charter flights throughout Southcentral and Western Alaska, connecting communities such as Anchorage, Kenai, Homer, and Unalakleet. However, earlier this year, an aircraft maintenance issue disrupted services, exacerbating the airline’s financial struggles.

“Today, the bank is calling that debt,” Caldwell wrote. “We have to cease all operations immediately. I am devastated.” Residents and travelers were left scrambling after receiving emails about canceled flights.

Kelsi Ivanoff, a community member from Unalakleet, expressed her shock at the sudden shutdown. “Flights had been running and were full, after the summer and fall of cancellations. Now we are back to square one,” she said. “The only way to fly out is an expensive and circuitous trip through Nome.”

Caldwell expressed hope for the airline’s revival, stating that he is actively searching for investors to secure a future for the company. “If you are a praying person, I need your prayers. If you aren’t, I need your hope,” he wrote, emphasizing a desire to find support for a potential comeback.

The airline’s closure comes less than three months after Ravn Alaska, a major airline servicing rural routes, also shut down unexpectedly, raising concerns about the stability of air service in rural Alaskan communities.

“It’s hard to ground a vision,” Caldwell stated, reflecting on the company’s mission to connect Alaskans. With the future uncertain, many families and businesses in remote areas now face significant challenges for transportation and supply access.