Manx2 is to suspend services to Leeds Bradford and Oxford next year, due to a drop in demand.
The company's announced flights to both destinations will be withdrawn for the first quarter of 2013, a decision managing director David Buck says has been taken 'with regret'.
Mr Buck says the company has frequently warned that increased air passenger duty taxes and declining visitor numbers would affect the breadth of the Island's air network .
He also claims new services adding 'substantial' extra capacity to London and Liverpool in recent months have distorted travel patterns.
The Oxford and Leeds Bradford services will operate as scheduled over the Christmas and New Year period.
Passengers booked on flights to Oxford after that time will be offered seats on Manx2's Gloucester route while Leeds Bradford passengers are invited to transfer onto Newcastle or Blackpool flights.
Manx2 will re assess demand early next year, but says it will be operating its Oxford and Leeds Bradford services during the 2013 TT period.
Trade is good, but it's still a struggle to make a profit, says local business
Villiers Square development plans approved
Developer offers Newson's building to government 'free of charge'
Financial education course launched through UCM
TT races have 'inevitable impact' on local businesses, says DfE
Hospitality bosses to attend 'call to arms' meeting
