American Airlines is pulling out of Australia after the federal government again cut the cap on air arrivals into the country.
It is the first global carrier to completely halt all flights.
It will be a suspension lasting from the end of August to late-October.
It impacts American’s Los Angeles-Sydney route.
Australia decided to halve the caps in a bid to better manage hotel quarantine operations
It takes the maximum number of inbound arrivals allowed from 6,070 passengers a week to just 3,035.
Trade group the Board of Airline Representatives of Australia expects more carriers to pull out.
"Despite all the effort they’ve put in, it gets to a point where the only rational response is to suspend operations to Australia, perhaps for a very long period of time," said BARA Executive Director Barry Abrams said.
"There’ll be a reduction in the level of connectivity available to Australians overseas to get home."
