Balloon
Description: "Used to travel between islands and over gaps in dungeons. Travels in the direction you're facing during take off. Not the fastest (or safest) way to fly, but it gets the job done."
The Balloon is one of the items that can be accessed in the Tool Wheel, or 'Q' Menu. When equipped and facing the edge of an island, you can use it to float forward, using energy as you travel. Unlike the Broom or Glider, the Balloon can only be lightly steered, and don't allow turning back. Once started, it will only float forward. The Balloon, along with the Broom, is able to be used inside of Dungeons.
Crafting
You can craft a Balloon in the Crafting tab of your inventory, using 3 Cloth.
The crafting recipe is provided after receiving the quest 'Craft a Balloon' through a letter from your mother when you exit the Tavern on your first morning on Moonstone Island.