Australia's Jetstar plans to withdraw its daily Brisbane-Rockhampton service after failing to secure a competitive pricing agreement with Rockhampton Airport.

It will stop operating the service from 9 May, and will add an extra daily service on its Brisbane-Mackay route from 10 May, says the low-cost carrier. This expands the Mackay service up to four times daily, it adds.

"While it is regrettable that we could not reach an agreement with Rockhampton Airport at this stage, the door remains open for the return of Jetstar services if we can achieve a competitive pricing structure with the airport," says Jetstar CEO Bruce Buchanan.

"Airport-related costs represent up to 25% of Jetstar's cost, so working in partnership with them is key to our airline's ability to offer customers low fares."

QantasLink's Sunstate Airlines and Virgin Blue operate on the Brisbane-Rockhampton route, according to schedules in Flightglobal's Innovata database.

Source: Air Transport Intelligence news