AirAsia X is suspending its Auckland-to-Sydney service in favour of trips to the Gold Coast instead.
The three-weekly flights to Queensland will start on 3 February 2024, with the route to Sydney ending on 31 January.
Chief executive Benyamin Ismail said the Gold Coast-Auckland route was the airline's first just over 16 years ago and continued to be a favourite leisure destination for its travellers.
"These decisions are made with thorough review and careful consideration of all relevant information. Our network will continue to evolve based on a number of factors but primarily based on consumer demand.
"We understand the inconvenience for affected guests booked on the Sydney-Auckland route next year so we are doing all we can to minimise any disruption by contacting them as soon as possible."
Those passengers will be offered a refund or credit, or if flying on to Kuala Lumpur, a free transfer via Gold Coast.
Ismail said the airline remained committed to Auckland as a destination.
"We will continue to monitor the situation and if demand returns we will consider reinstating the Sydney-Auckland service at a later date. However, for now and as a leisure-focused airline, we are seeing more demand across the Tasman to and from the Gold Coast."
Queensland Airports Limited chief commercial officer Adam Rowe said the return of AirAsia X's Gold Coast-to-Auckland connection would provide more options for travellers.
"This is a welcomed addition to our network and exciting news for travellers - flights between the Gold Coast and Auckland are our busiest international connection, with more than 220,000 passengers travelling on that route since January.
"Around 60 percent of passengers travelling between the Gold Coast and New Zealand fly to or from Auckland, and the return of this service will add more than 350,000 extra seats on that route annually.
Rowe said the addition of the service would give customers more choice and create more competition to help put "downward pressure on airfares".
Fares are on sale from 5pm Tuesday (NZ time), starting from $179 for travel between Auckland and the Gold Coast.