Loganair is to shelve flights from Teesside to Heathrow and Southampton due to a “significant increase” in the costs of running the services.
The airline and airport said a recent rise in Heathrow’s take-off and landing fees coupled with the surge in global oil prices affecting aviation fuel had made the Heathrow route “unviable”, confirming it would end in two weeks.
Loganair’s Southampton service will also be stopped as a result of the Heathrow cancellation as it cannot be accommodated on the carrier’s remaining aircraft.
Passengers booked to travel to Southampton will be offered alternative flights or a full refund, while those bound for Heathrow will receive a full refund.
In a joint statement, Loganair and Teesside insisted its “valued partnership is set to continue” with other services set to operate to major UK cities.
A Heathrow spokesperson said Loganair and Teesside’s decision came after months of "extensive engagement" and was not born of "a lack of effort" on the airport’s part.
The announcement from Loganair and Teesside came as Heathrow boss John Holland-Kaye renewed its call for a more generous passenger fees settlement from the CAA.
Heathrow has requested permission to increase its passenger fees by up to 95%; the CAA has, so far, granted temporary permission for a 56% increase. A final decision on the settlement is due this summer.
Phil Forster, managing director of Teesside, said: “I’d like to thank all of our loyal passengers who have been supporting this service since its launch and apologise for the inconvenience this will cause.
"Rising costs across the industry have meant that the route is no longer viable and not something we could support without passing that on to our passengers.
Forster said that while business passenger volumes had slowly been recovering, numbers “were still nowhere near pre-pandemic levels” which “immediately” put the route at a disadvantage.
“Loganair remains a committed partner to our airport, and we are working alongside other operators to increase our routes and destinations to give local people an airport they can be proud of.
"We are also seeing hugely strong forward bookings on our summer holiday routes with Ryanair and Tui, proving people want to get away and brighter days are ahead."
Kay Ryan, Loganair’s chief commercial officer, said she was “extremely disappointed” the Heathrow service would not continue to operate.
“We thank Teesside for their support over the last 12 months, and are looking forward to continuing our excellent working relationship.”
The Heathrow spokesperson said: “Heathrow has a strong track record of supporting and investing in domestic routes. That’s why five of the 10 busiest UK domestic routes already fly through Heathrow. Since 2017, we have discounted our charges for domestic flights and we continue to do so this year even though we have lost over £4 billion during the pandemic.
"Over many months, we have had extensive engagement with mayor [Ben] Houchen’s office and Teesside officials to discuss solutions to help support this route. While this development is frustrating for us all, it is not from a lack of effort by Heathrow. We remain committed to seeing Teesside airport connected with Heathrow.”