There was a lot of fanfare at the launch, but a direct flight between St. John's and Moncton has been cancelled after just two months.
PASCAN said despite schedule changes and an aircraft adjustment, passenger loads and cargo opportunities weren't enough to keep the service going.
The company said the service will be suspended as of Dec. 13.
When the airline held its inaugural flight on Oct. 10, it had been almost seven years since commuters and travellers could fly non-stop direct between Moncton and St. John's.
In a press release emailed to CBC on Thursday, Julian Roberts, PASCAN's general manager, said the numbers were not enough to sustain the 42-seat aircraft.
"Perhaps the realization of the new service was merely a timing issue," said Roberts.
"We were very excited to embark on this important milestone for PASCAN and we offered what no other airline did. We created an important partnership with the people in Moncton and St. John's and established an important air link. Nonetheless, it wasn't enough to permit PASCAN to break even on the route."
Roberts added that should demand increase, and opportunities for contracts with companies who travel back and forth between the two city points become available, they would revisit the direct service.
Passengers holding tickets past Dec. 13 will receive a full refund.