Air New Zealand has confirmed it is cutting back its services between Wellington and Australia, a move which is expected to deliver a blow to the capital's economy.
The airline would drop one return flight per week from Wellington to Sydney in January, and in February it would reduce its daily return flight to Melbourne from seven days a week to six, Air NZ spokesman Andrew Aitken said.
Flights to Brisbane are under review.
The news comes not long after Air NZ said it was cutting flights between Auckland and Masterton, and between Wellington and Wanganui.
The cuts were made because of "soft passenger demand" as flights from Australia into Wellington had on average five per cent fewer passengers than trans-Tasman flights into Auckland or Christchurch, Mr Aitken said.