Barrier Air will withdraw its daily air service between Kaitaia and Auckland at the end of January unless it can boost passenger numbers.
The airline launched the service in April budgeting on filling at least half the seats on each flight. Chief executive Michael Foster said it had not been meeting that target and was losing a substantial amount of money every month. The company could not afford to do so for much longer but was prepared to hold on to see if the situation changed with the onset of the summer tourism season.
"We're hoping there will be a boost to traffic with people travelling to visit friends and family, and with a greater number of tourists flying into the region," Mr Foster said.
The airline would also introduce its Cessna Caravan, a more spacious, newer and economical aircraft than the Piper Chieftain it had been using to date. And it would introduce flexible fares and a range of special and discounted ticket prices.
"We've heard those people who have said that our fares are too expensive. But the truth of the matter is that we set them at the lowest possible point we could, on the basis that we would be operating at about 50 per cent over winter and spring," Mr Foster said.