A Penobscot Island Air plane flies above Penobscot Bay. Credit: Courtesy Penobscot Island Air

A small airline that planned to suspend mail delivery to several midcoast islands will continue service as usual after the U.S. Postal Service promised to pay a portion of the nearly $400,000 it owes to the carrier.

“We have received word from the USPS that they will pay about 25% of their balance on Friday,” Penobscot Island Air said in a Facebook message Tuesday evening.

“Considering the pace at which USPS generally moves, our contract officer pulled off a small miracle to make it happen. We have a framework for going forward, and there’s enough clarity for us to work with. We’ll be back in the morning delivering mail,” the airline wrote.

Penobscot Island Air has said the USPS had racked up a debt of $388,000 dating back to 2023. The carrier said the debt threatened its operations. In response it had planned to discontinue mail deliveries to North Haven, Vinalhaven and Matinicus until the USPS laid out a repayment plan.

The threat “kicked up a proper dust storm,” Penobscot Island Air owner Sean Creeley said on Tuesday morning, and left many island residents concerned about losing a service they rely on.

The airline on Tuesday night said it was contacted by all four members of Maine’s congressional delegation and received extensive news coverage, which it credited with speeding up the resolution.

“Truely, we have been trying to deal with this on our own for too long and should have turned to the community sooner. We are proud to support the islands and call Knox County our home. Back to work, we have a road ahead of us, but we feel more confident in the outcome,” the airline wrote.

Ethan Andrews is the night editor. He was formerly the managing editor at The Free Press and worked as a reporter for The Republican Journal and Pen Bay Pilot.

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