Air New Zealand general manager domestic Scott Carr blamed the cut on a drop in demand for the service between the two cities.
"Over recent months, we’ve seen domestic demand soften in response to a tough economic backdrop. This is most evident on some of our regional network.
"Concurrently, we also have aircraft out of service due to global engine maintenance issues," Mr Carr said.
The company said it was working to re-accommodate those who had already booked to travel on the route.
"We know this change may cause inconvenience for some, but we want to assure our customers that we remain committed to connecting Invercargill to our wider network via the direct Christchurch and Auckland services."
Additional flights from Christchurch to Invercargill would be added to "ensure there is sufficient capacity".
The change will come into effect from January 19, 2025.
Invercargill Licensing Trust chief executive Chris Ramsay runs 23 different establishments, and is expecting to host thousands of visitors to Invercargill next year. He told Checkpoint Air New Zealand is putting profit ahead of its social responsibility to service the regions.
"They've got to make money, but they've also got a social obligation," Ramsay said.
"You've got to make decisions at times that aren't necessarily all about the bottom line, they're about what's best for the community."
Invercargill had lobbied together to try and put a compelling case to say that it should be retained, Ramsay said.
"Particularly given the scale and number of events and conferences that we've got next year, we could see a forecast that was positive, but clearly Air New Zealand couldn't."
- ODT Online/RNZ
