American airline Kenai Aviation halts all flights amid insolvency; pandemic-era debt blamed for financial collapse

Kenai Aviation, a regional Alaskan carrier known for connecting remote communities, has announced an immediate halt to all operations after becoming financially insolvent.

In an emotional letter to employees and customers, owner Joel Caldwell revealed that despite full flights and operational success, the airline’s heavy debt load—dating back to the pandemic—has forced it to cease service.