Mesa Air Group says it will end all commercial flights in Hawaii effective from the end of this month.
It has operated the go! Airlines low-cost carrier on inter-island flights since 2006, but wants to deploy its aircraft "to support our existing mainland operations," said Mesa CEO Jonathan Ornstein.
Ornstein also said rising fuel costs had eaten heavily into its profit margins.
Mesa Air will re-position its Hawaii aircraft on routes it operates for US Airways and United Airlines, which accounts for around 98% of the company’s business.
It operates under contract as US Airways Express and United Express brands and currently flies 71 aircraft to 85 cities in the US, Canada and Mexico.
For existing ticket holders flying from April 1, flights will be re-booked on Hawaiian Airlines’ services until the end of June, and beyond that, refunds will be offered.
Ticket holders will be contacted by go! reservations staff and the company said it will operate a normal schedule until the end of March.
Since its maiden flight go! has flown over 5 million passengers in Hawaii and at one point had one-way fares as low as $1.