The airline, Continental Micronesia says it may raise its airfares for Majuro in the Marshall Islands if the height of a cell phone tower near the airport is not lowered by three metres.
The 31-metre tower has been a source of controversy since it was erected by the National Telecommunications Authority less than one mile from the airport runway last September.
Continental Micronesia says the height and location of the tower has meant that Federal Aviation Administration rules imposes a weight restriction on its flights from Majuro to Honolulu.
Its says that reduces its ability to carry full loads from Majuro, which has a negative impacts on customers and the airline's revenues.
The airline says its working with government parties to resolve the issue.