Fredericton could lose its direct air service to Boston, but the airport authority is optimistic another airline can be found to replace it.

Big Sky Airlines currently operates the Delta Air Lines flights to Boston but has suggested it may be scaling back its service, said David Innes, head of Fredericton's airport authority.

The soaring cost of oil is creating problems for Big Sky, said Innes. When the operator took over the route last year, oil was about $50 US a barrel but at current prices — about $88 US a barrel on Monday morning — the airline can lose money on the flights even if the planes are almost full, he said.

"The best thing that could happen is that Big Sky issue are resolved. But if they aren't, we're going to have to be on stand-by and look at all of our options again," Innes said.

Innes said he doesn't expect it to be difficult to find a replacement if Big Sky does pull its service.

About 75,000 seats have been sold since Delta first began offering the service in 2003. It shows there is a need for a direct flight to the northeast United States, Innes said.

"I think we've kind of proven the case now. It's really just a matter of going out with the numbers and the history that we do have and finding somebody who's in a position to do this work," he said.