Maine island air service says it won’t deliver mail because USPS owes nearly $400K

A midcoast air service that delivers U.S. Postal Service mail to Maine island communities plans to pause deliveries due to a lack of payment.

According to a post on Penobscot Island Air’s Facebook page, the service has had payment issues with USPS going back as far as 2023. It has not been paid for a single delivery made in 2026, according to the flight service.

As of March 13, Penobscot Island Air has not received any payment of the roughly $388,000 owed to it by the postal service.

Penobscot Island Air, which is based out of Owls Head and flies out of Knox County Regional Airport, is an important lifeline for the island communities off the midcoast. It offers year-round flights for passengers, freight, mail and medical supplies. It also provides some charters and sightseeing flights.

“While our mission is to support the islands, PIA employees need a paycheck. We can’t operate as a business if almost a fifth of our yearly revenue is tied up in the bureaucracy of the United States government,” Penobscot Island Air said in the post.

“We have to make a small stand, so we won’t be delivering USPS mail today.”

The amount owed to Penobscot Island Air constitutes roughly one-fifth of its yearly revenue.

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