Kenai Aviation announced Monday that it was ceasing all flight operations. The company said in a Facebook post it was "financially insolvent" after accruing debt during the pandemic and would stop flying by the end of the day.
Since 2022, the airline has offered more than a dozen daily flights between Anchorage and the Kenai Peninsula, including to Kenai, Homer and Seward. Before Monday, it was one of three airlines serving the Kenai Municipal Airport, alongside Grant Aviation and Aleutian Airways, after Ravn pulled out of the region.
Joel Caldwell and his brother, Jacob Caldwell, purchased Kenai Aviation in 2018. Neither immediately responded to requests for comment Monday.
On Facebook, Joel Caldwell said he was "devastated," writing: "We need capital, we need partners, we need a lifeline. That investor is out there, we just need to find them."
Kenai Aviation served eight communities across Alaska with its mixed fleet of Beechcraft Super King Air and Tecnam Traveller P2012 aircraft.
Earlier this year, the federal Department of Transportation picked Kenai Aviation to run its essential air service route to Seward. That contract was expected to run through 2027. Around the same time, it also picked up the federal route between Anchorage and Unalakleet, near Nome. It was the only regularly scheduled passenger airline serving the route. But in August, Kenai suspended flights after its only King Air plane was down for maintenance.
The company's Facebook post said the grounded King Air compounded its financial troubles.
Interim Airport Manager Mary Bondurant said the the City of Kenai will collaborate with its remaining airlines to meet passenger demand and explore other airlines that may be interested in offering passenger flights to Kenai.
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