Solomon Airlines has made 57 staff redundant.
The move follows continued problems, with the airline's general manager, Gideon Zoloveke junior, saying the latest cut means that the company has shed about 100 staff since the coup in June 2000.
Mr Zoloveke says the redundancies are needed despite another Twin Otter aircraft coming back into operation last month.
He says losing staff is always hard.
"Redundancies are not things that any company wants to look forward to - it's a difficult choice, having said that, I think we have a real situation and the only pratical way to address those is to release those cost-structures that are a burden. The hope is that you do get yourself to a position where you can grow"
Mr Zoloveke says if the airline improves its position, redundant staff will have first right of recall.