California Pacific Airlines has suspended all west coast flights, blaming a shortage of pilots.
The airline says it is a temporary suspension but has not indicated when or if it will resume operations.
CPA only launched two months ago with flights out of Carlsbad, California to San Jose, Reno, Las Vegas, and Phoenix.
"All air carriers are feeling the impact of the shortage in some fashion. We have been fighting this new reality and managed to reduce the impact on our customers until recently," said COO Fernando Pineda.
The airline said all tickets booked through January will be automatically refunded within the next 10 days.
The carrier was founded by 97-year-old CEO Ted Vallas and took nearly a decade to get off the ground due to a long drawn-out regulatory process.
CPA had to cancel several flights in December due to mechanical issues.
