Caroline Islands Air is ending its service in the Federated States of Micronesia after 11 years.
The airline will close its doors at the end of this month.
The Kaselehlie Press reports that Caroline Air's last round trip from Pohnpei to Sapwuafik is on July 25th.
The airline says it can no longer afford to operate.
CIA asked the FSM Congress for a subsidy.
Congress approved more than 160,000 dollars for the airline but President Mori vetoed the item in the budget package.
President Mori said Caroline Air should operate more as a private entity.