Air Chathams will suspend its flights between Kāpiti Coast and Auckland from July 20, the airline confirmed, citing low passenger numbers and rising operational costs.
A three-year route comes to an end
The regional carrier launched the service in 2022 with hopes of building a reliable link for commuters and businesses on the Kāpiti Coast. For a while, it worked. But demand never reached the levels needed to make the route sustainable.
Chief executive Duane Emeny said the decision wasn’t made lightly. “We’ve given it a solid go, but the numbers just aren’t there,” he said. The airline operates a small fleet of Saab 340 aircraft, and keeping one tied to a underperforming route became harder to justify as fuel and maintenance costs climbed.
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Passengers with existing bookings after July 20 will be contacted directly and offered refunds or rebooking options, the airline said.
What this means for the Kāpiti Coast
The suspension leaves the region without a direct air link to Auckland. Travelers will now need to drive to Wellington Airport — roughly 45 minutes to an hour south — or take the train. For business travelers and government workers who regularly commute between the capital region and Auckland, the loss is inconvenient.
Mayor Janet Holborow expressed disappointment but acknowledged the airline’s position. “We understand the commercial realities,” she said. “But it’s a blow for local businesses and residents who valued the service.”
The route had been subsidized in part by the government’s Regional Air Connectivity Fund, which aims to keep regional routes viable. That funding arrangement was due for review later this year.
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Small carriers face a tough market
Air Chathams isn’t alone in struggling to maintain regional routes. Smaller carriers across New Zealand have pulled back from secondary routes as larger airlines like Air New Zealand dominate the trunk routes and control airport slots at peak times. Rising fuel prices, crew shortages, and maintenance costs have all squeezed margins.
The airline, based in the Chatham Islands, has a reputation for reliable service on its core routes to and from the islands. Expanding onto the mainland has proven difficult. The Kāpiti service was its only mainland route outside of its seasonal charters.
One aviation analyst, who asked not to be named, said the suspension was predictable. “Regional routes are hard to make work unless you’ve got a consistent base of business travelers or government contracts,” they said. “Without that, you’re relying on leisure traffic, and that’s seasonal and fickle.”
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Passenger numbers tell the story
According to data from the airline, the Kāpiti-Auckland route carried an average of 35 passengers per flight in the last six months. The aircraft can seat up to 34 people. That means many flights were running close to empty on the return leg. Load factors — the percentage of seats sold — averaged around 52% over the period, well below the 70-80% typically needed to break even on regional turboprop routes.
The airline declined to disclose exact financial figures, but Emeny said the route had been losing money for most of the past year. “We tried different schedules, different pricing. Nothing moved the needle enough,” he said.
Air Chathams will continue to operate its freight and passenger services to and from the Chatham Islands, as well as its charter operations. No other routes are affected.