Kenai Aviation suspends flights, says its insolvent

Kenai Aviation, a small regional airline connecting Alaska communities, has suspended all flights after declaring financial insolvency, according to a heartfelt statement from owner Joel Caldwell posted on social media.

Caldwell said that although the company’s flights were full and the airline was meeting operational goals, the debt burden that began during the Covid pandemic had become unsustainable. “By all operational metrics, Kenai Aviation is successful. But yet, we are financially insolvent,” he wrote.

Caldwell described the moment he learned that the bank was calling the airline’s debt and that he had to cease operations immediately. “I am devastated,” he said, recounting how the company’s King Air aircraft had just returned to service for its Unalakleet route and that Anchorage flights were full.

Founded in 1941 and revived by Caldwell in 2017 after a near shutdown, Kenai Aviation has long been a lifeline for travelers and freight between Southcentral and Western Alaska. Caldwell’s post reflected both heartbreak and determination, emphasizing that while flights have stopped, the vision behind the airline remains alive. “Our operations may stop, but this vision continues,” he wrote.

He appealed for partners and investors to help rescue the airline. “We need capital, we need partners, we need a lifeline. That investor is out there, we just need to find them,” Caldwell said, adding that he refuses to give up on keeping the airline’s mission alive.

“While today all flights cease operations, who knows what tomorrow will hold,” he concluded. “It’s hard to ground a vision.”

A call to Caldwell reached a busy signal on Monday afternoon after his social media post.