Kiwi Regional Air is ending its flights between Dunedin and Queenstown, just a month after starting the service.
The last flight will be on November 30.
"The services to Queenstown have been extremely challenging for our company, with a combination of several weather-related cancellations and low passenger bookings making it unsustainable for this service to continue," chief executive Ewan Wilson said.
"We made a commercial decision to end the scheduled Queenstown flights before they affected the performance of our whole company, but we have left it open to return to the city at a future date, for charters or potential alternative scheduled services."
Mr Wilson said all those who had booked flights after November 30 would be contacted this week and offered a full refund or alternative arrangements.
Staff and contractors affected by the decision had been contacted by the airline.
Mr Wilson said the company's other services between Dunedin, Nelson and Hamilton had exceeded expectations in their first month, and the company was looking to expand to cover areas such as Hawkes Bay, Bay of Plenty and Taranaki in future.
