The airline faced financial issues coming into the 1990s. In 1993, the airline moved its maintenance facility from Bangor to Manchester, New Hampshire, resulting in the loss of 45 jobs in the Bangor area.[7] In a fatal blow to the airline, Northwest Airlines decided in 1994 to use the Delta Air Lines-affiliated Business Express Airlines for its Boston feeder services, causing Northeast Express and its sister company Precision Airlines to declare Chapter 11 bankruptcy.[6] At the time of its bankruptcy, the company employed "operate[d] 33 aircraft and employ[ed] more than 550 people" in Maine and New Hampshire.[6] The company's "debts were estimated at $25 million (including about $60,000 owed to Bangor International Airport) compared with the $20 million that the two companies had in assets. [6] Despite Allyn Caruso's attempt to establish a service partnership with USAir, the company was liquidated in 1995.
Former CEO Allyn Caruso would go on to run the MAC Air Group, a fixed base operator out of Portland International Jetport, until his death in 2024.[8] Roland Martin founded Pine State Airlines in 1995, which operated routes in Maine until it was closed in 1998.[9] Martin and his wife were named Citizens of the Year in Frenchville in 2002.[3] Martin passed away in 2010.[10]