Australian regional airlines, Brindabella Airlines and Aeropelican Air Services, will cease daily flights from Brisbane to Armidale, and between Canberra and Albury from 8 June.
The announcement follows the introduction of the federal government's carbon tax and the removal of the en-route rebate scheme, both from 1 July.
"Both of these routes are marginal and cannot be sustained with the additional cost impost that these changes will bring," says group chief operating officer Ian Vanderbeek.
The airlines will deploy the aircraft used on the routes for charter services.
"Aeropelican and Brindabella are well placed to serve the growing demand for whole of aircraft charter in the 18-30 seat range, with aircraft strategically based in Brisbane, Canberra and Sydney and able to react at short notice," adds Vanderbeek.
The increased charter availability will complement the airline's daily scheduled flights to Cobar, Mudgee and Narrabri and will provide flexibility to those companies who need to charter aircraft for short or long-term requirements.
Brindabella operates 20-seater BAE Jetstream J41s and 18-seater Metroliners.