Wanaka lost its sole commercial service as Sounds Air (S8, Picton) terminated its direct flight to Christchurch on September 28. The regional carrier also terminated flights from Christchurch to Blenheim on the same day, citing uncontrollably high costs, despite demand remaining strong.

“We're going back to what we originally did in the Cook Strait market in Blenheim, Nelson, NZ, Picton, and Paraparaumu, and concentrating on that,” Sounds Air chief executive Andrew Crawford told Radio New Zealand.

ch-aviation previously reported that Sounds Air was selling off its fleet of six PC-12s and made ten personnel redundant as it struggled to fight off cost pressures and unfavourable exchange rates. While the Pilatus Aircraft fleet enabled the carrier to fly longer routes, it was significantly costlier to operate than Sounds Air's legacy Cessna (single turboprop) C208 Grand Caravans, Crawford explained.

The New Zealand government announced early in September that it would provide a loan package of up to NZD30 million New Zealand dollars (USD17.5 million) for regional carriers as short-term relief to aid aircraft leases, maintenance, and debt financing.

However, the concessionary loans came too late for Sounds Air, which had already performed irreversible cost-saving measures. Crawford said parts costs and civil aviation fees are among the highest expenditures for regional airlines.

In December 2024, the carrier also axed flights from Wellington to Taupo and Westport. Sounds Air has since planned to focus entirely in its Cook Strait operations with its remaining fleet of four C208s. The airline plans to add more Grand Caravans to replace the retired PC-12s.

ch-aviation has reached out to Sounds Air for comment.