Boutique business class airline La Compagnie has blamed Brexit for the decision to suspend its UK-Newark route, 16 months after launching.
The service launched in April 2015, operating between London Luton and Newark airports.
La Compagnie said it will no longer operate the service as of September 25, due to ‘a new economic climate in Europe, fueled by Brexit, that has already affected various significant players within the airline industry’.
Instead, La Compagnie will ‘intensify its presence on the Paris-New York route’ with the introduction of a second daily service from the French capital, starting in October.
CEO Frantz Yvelin said the Paris route had been ‘a tremendous success’ and the decision to scrap the UK route had not been taken lightly, but described the economics of the route as ‘fragile’. Load factors averaged around 77% since June.
Yvelin said: "This has not been an easy decision for us to make but we would like to emphasise that this is the suspension of, not the cancelation of, the London-New York route.
"We are the firmest believers of the UK’s unique market position, hence the decision to invest heavily in our London route for the past 16 months.
"Meanwhile, the result of the EU referendum has created an unprecedented level of legal and economic uncertainty for airlines that service Great Britain.
"Hence, our decision to accelerate development on our Paris-New York route where loads are already 80%+ as we recognize the increasing market demand in both the corporate and leisure segment.
La Compagnie will operate its last round-trip flight between Luton and Newark on September 24, 2016.
Customers booked to travel beyond that date will get a full refund or will be given the option to rebook onto the Paris-New York route free of charge.
