Ryanair has announced that it is to cut its daily route from Kerry to Dublin from three to one return flight at the end of October.
The airline claims that the move is in response to a decision by Transport Minister Noel Dempsey not to increase subsidy payments under the Kerry PSO contract in order to reflect the Govt-imposed cost increases.
It says from now on it will operate the service without any subsidy and on a purely commercial basis.
Ryanair has also confirmed that it is planning on serving bigger airports across Europe.
Passengers flying with the airline often find themselves at terminals 25 miles or more from the cities they serve, such as Brussels Charleroi, Glasgow Prestwick and Milan Bergamo.
The airline now claims bigger airports are keen to get their business, because of the downturn.