Eastern Airways has officially ceased all flight operations and entered liquidation after its preferred bidder walked away from exclusivity and withdrew funding, collapsing the proposed rescue sale. Joint administrators RSM confirmed the deal fell apart less than three weeks after exclusivity was agreed, leaving no viable alternative to save the 29-year-old regional carrier as a going concern. The collapse, confirmed on 3 July 2026, ends connectivity for North Lincolnshire and surrounding regions, while the Jetstream fleet is being sold off piece by piece. The affiliated company Air Kilroe is also included in the liquidation, underscoring the fragility of securing funding for regional airline rescues in the current economic climate and potentially dampening investor confidence in similar UK operators.