Budget airline Air Asia is pulling out of Darwin.
The airline began flying between Darwin and Bali in 2010 but cut its service from six flights per week to four last year.
The ABC reports the Northern Territory government paid $A56,000 last financial year to advertise the airline's services.
Chief Minister Paul Henderson says the withdrawal will not stop the government from supporting new airline services.
Darwin Airport director Jim Parashos says SilkAir of Singapore will begin flying to Darwin soon.