The company announced yesterday it would no longer operate its direct service from January 19 next year.
It runs two direct flights from Monday to Friday, with one flight to Wellington on Saturdays and one returning to Invercargill on Sundays.
Air New Zealand general manager domestic Scott Carr said the decision was due to softening of demand domestically and global engine maintenance issues putting aircraft out of service.
"As a result, we have had to make the tough decision to no longer operate the direct Invercargill-to-Wellington service from 19 January 2025.
"Customers will still be able to fly to Wellington via Christchurch. We will be adding additional flights between Christchurch and Invercargill to ensure there is sufficient capacity."
The company would be rebooking those who were already set to travel and the company was "committed to connecting Invercargill to our wider network via the direct Christchurch and Auckland services," he said.
Invercargill Mayor Nobby Clark said the decision was very disappointing for the community. It could potentially increase costs to council, and consequently, to ratepayers.
"Many meetings ICC [Invercargill City Council staff] attend in Wellington will mean either an overnight stay to miss the first part of the meeting by needing to fly via Christchurch.
"It will be the same for many business flyers - which is sad given Southland’s contribution to the national economy."
Southland Chamber of Commerce chief executive Sheree Carey agreed.
"While we understand the challenges that Air New Zealand faces, this news is disappointing for our community, particularly for businesses and individuals who rely on this vital link to our nation’s capital.
"Direct flights play a crucial role in fostering connections for business travel, tourism, and personal journeys, and losing this service could impact our local economy and accessibility."
Despite the challenges presented by the discontinuation of the service, she remained optimistic about the future of air travel in Southland.
"It’s essential that we work together to enhance our regional connectivity and explore new opportunities for air services that can support our local economy."
Invercargill Airport chief executive Stuart Harris said the news would not have any impact on staff levels at the airport.
"It won’t change any of that because we still need to provide the services we need to provide across the same span of time...
"And certainly Air New Zealand, in the conversations we’ve had with them, they’re still expecting... [that] the passenger numbers are still similar to what they currently are - they are just trying to encourage people to go via Christchurch."
When asked if this decision could be overturned in the future, he said that they would keep working with the company to ensure the connectivity to the region was as strong as it could be.
"I mean, Air New Zealand, they haven’t used the word cancel.
"Growth is always on the conversation with Air New Zealand and so it’s around how we best serve the people with the aircraft they’ve got, with capability they’ve got, and at a price that people can afford it, so it’s just going to be trailing off all of those things in the future."