Photo: Ellen Curnow
Regional operator Sounds Air is canning its Wellington to Taupō service as escalating costs put the squeeze on the aviation sector.
Sounds Air cancelled its Wellington to Westport service three weeks ago.
Managing director Andrew Crawford said while demand for flights was strong, costs were too high.
"Decisions like this are not taken lightly. This has been a very tough call for management and our shareholders," he said.
"We have done everything that we can to avoid cancelling these services."
Crawford said the company could not pass on massive fare increases or have shareholders subsidise services indefinitely.
Sounds Air was not alone in reviewing its regional flights, he said.
"Air New Zealand reviews its regional services on a regular basis and Jetstar has made it clear that they do not intend to extend their domestic network to include regional New Zealand."
The Wellington to Taupō route was the last the company would can, Crawford said.
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