Doctor Crawford suspends Karl Ritter's flying license for health reasons. Ritter runs a domestic airline service in a small district. When Kate is appointed to be Ritter's pilot, he is reluctant.
Karl's competitor Sandby gives him 48 hours to pay up after which he will buy over Karl's business. Karl is, meanwhile, too proud to get any kind of help from a woman and turns down Kate's offer.
Aldo McKay, an American meteorologist attempts to fly his hot-air balloon in stages from Alaska to Washington state. He runs into trouble during a storm and is forced down near Ritter's Cove.
Karl regains his pilot's license but still needs Kates help with the company. His younger brother Franz arrives from Germany for a visit bringing his wife and kids.
Franz wants to involve Sandby in the purchase of new plane. During the ensuing argument over the direction of business operations, Franz comes out with long-held feelings against his brother.
Kate's father arrives at Ritter's Cove with news of an inheritance for Kate. He has been trying to get her to return to Vancouver and feels the inheritance will encourage her to put a down payment on her own aircraft.
Angel, Tom Oliver's small daughter, accidentally releases a baby puma from an animal sanctuary. While trying to recover the animal she follows it into the wilderness and the whole community turns out to help search for the girl.
When Eric's helicopter is the only thing which can get into a remote area to rescue an elderly couple from a forest fire he loses his nerve until Kate threatens to take the helicopter.
A fisherman finds a float from Tim's crashed aircraft. When Karl, Kate, Hooter, Tom and Robert search the area, they find no clues, so they enlist the help of Captain Dirksen of the Canadian Fisheries patrol vessel, Laurier.
Karl has his doubts about rushing to the aid of Mulligan, an old prospector, who often says that he's injured just to get a free flight out of the bush.
While Karl is away, his grandsons take a dangerous trip to a trapper's cabin after hearing that the man has a watch just like the one worn by their still-missing father.
At Ritter's Cove preparations are in progress for a party to celebrate the reunion of the Ritters. Although Tim will require therapy for his injured right arm, treatment is delayed so that he can be on hand for Karl.
Tim Ritter has difficulty in regaining his coordination and confidence in flying after his accident. He takes out his frustrations on Robert who is keen to pick up his unofficial flying lessons where he left off.
Sandby becomes involved in a large swindle when his lawyer lets him in on a deal involving diamonds. Sandby's involved in a bait and swindle when his friend Horace lets him in on a great deal in diamonds.
Hooter, a fisherman friend of the Ritters', is totally smitten by Kate and his attempts to win her are the source of merriment to everyone in town except Kate.
Tim and Franz Ritter encounter trouble when they stop at Charlie Reynolds' float camp. After working up north for two weeks Tim and Franz Ritter are on the long journey back to Ritter's Cove.