Dublin-based Cityjet will withdraw from the busy London City to Edinburgh route at the end of October.
The airline has thrown in the towel in face of "very tough" competition from British Airways on this key route, which is popular both with parliamentarians and bankers.
CEO Christine Ourmieres told The Scotsman that the decision was unrelated to the carrier's impending sale, which has aroused much interest among Business Traveller readers on our forum.
Cityjet will continue with existing flights from LCY to Dundee and from Edinburgh to Paris Charles De Gaulle.
The slots which are currently used for the LCY to Edinburgh service will be utilised to increase flight frequency on other routes.
Cityjet currently operates up to four round-trips on weekdays between LCY and Edinburgh in comparison with BA's eight round-trips.
Alex McWhirter