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Low-cost airline Ryanair is pulling its services out of Newquay Airport in an ongoing row over charges.
The Irish company said it was walking away over the 'continued imposition' of the Airport Development Fee, a £5 charge for each passenger, put in place by the airport's owners, Cornwall Council.
The airline had been due to provide a summer service to Alicante in Spain.
It has apologised to passengers, and has said it will be offering a full refund to anyone who has already booked a flight.
Cornwall Council said the tax was designed to improve the airport's long term prospects, which would lead to more passengers using the facility in the future.
However, Stephen McNamara of Ryanair said: "We have had an issue with the £5 fee since it started.
"It is a significant fee and we do not believe it should continue."
The company's decision follows the withdrawal of Air Southwest's service to Gatwick from the airport.
According to the latest figures, passenger numbers increased at the airport from 75,000 in 2001 to more than 400,000 in 2007 and are forecast to grow to more than 1m by 2030.
