It's completely unfair that one airline gets propped up and the rest of us are out there on our own.
When the economics of distance collide with the volatility of global conflict, it is often the most peripheral communities that feel the fracture first. Link Airways' decision to suspend its Shellharbour routes on May 20 is less a corporate retreat than a symptom of compounding pressures — doubled fuel costs born of Middle East tensions, softening consumer confidence, and a regional aviation sector navigating without a safety net. For the Illawarra, the silence of an empty terminal is a reminder that connectivity, once lost, rarely returns on its own terms.
- Link Airways is bleeding tens of thousands of dollars daily on its Shellharbour routes, and a fare increase five weeks ago barely registered against the soaring cost of jet fuel.
- The suspension leaves Shellharbour Airport — the only commercial air hub the region has known since 2018 — without a single scheduled service and without a return date.
- The airline's Network Strategy Manager has called out what he sees as a two-tiered system, where Rex received tens of millions in government support while Link has been left to absorb the same fuel crisis entirely on its own.
- Local and federal officials have acknowledged the blow, but responses remain measured — the Lord Mayor calling it 'not unexpected,' and the federal MP pointing to ongoing government engagement with jet fuel supply chains.
- The path back depends on conditions no one controls: whether fuel prices stabilise, whether discretionary travel returns, and whether government support broadens to include carriers like Link.
Link Airways will pull its planes from Shellharbour Airport on May 20, ending the only commercial air service the regional hub has known since 2018. The airline is losing tens of thousands of dollars each day on its Melbourne and Brisbane routes — losses it can no longer absorb as fuel costs have nearly doubled since the Middle East conflict began, and passenger numbers have fallen sharply.
Jeff Boyd, the airline's Network Strategy Manager, described a market that is price-sensitive and increasingly reluctant to travel. A fare increase five weeks ago failed to close the gap between revenue and costs. With the broader economy tightening, discretionary trips simply aren't being made. Boyd framed the suspension as a pause contingent on improving conditions, but offered no timeline and no promise of return.
Boyd's frustration extended to the question of government support. While Rex received a $60 million commercial loan and a restructuring of over $100 million in debt during its collapse, Link has received nothing comparable. A $5 million federal package for affected regional airports was announced in February, but Boyd saw the disparity as deeply unfair. He also noted that Shellharbour lacks the promotional advocacy that airports like Newcastle and Dubbo enjoy, and called on Wollongong to do more to champion the service.
Local officials responded with measured acknowledgement. Lord Mayor Tania Brown called the suspension unsurprising given global fuel pressures, while federal MP Carol Berry described it as disappointing and pointed to the Albanese government's engagement with jet fuel supply issues. Link Airways continues to operate across three states and has announced a new Canberra–Launceston route — but for the Illawarra region, the only commercial airline serving their airport has decided the route is no longer worth flying.
Link Airways will pull its planes from Shellharbour Airport on May 20, ending the only commercial air service the regional hub has known since 2018. The airline is hemorrhaging tens of thousands of dollars each day on its routes to Melbourne and Brisbane, a loss it can no longer absorb. Fuel costs have nearly doubled since the Middle East conflict began, and the passengers who once filled those seats have largely stopped booking.
Jeff Boyd, the airline's Network Strategy Manager, laid out the arithmetic plainly: the market at Shellharbour is price-sensitive, and last month's passenger numbers were, by his account, dismal. Link raised fares five weeks ago, but the increase barely dented the gap between revenue and the soaring cost of jet fuel. Meanwhile, the broader economy has tightened. People are cutting back on discretionary travel. If a trip to Melbourne or Brisbane isn't essential, it doesn't happen.
What makes this suspension sting is the absence of a return date. Boyd framed it as a pause, contingent on whether conditions improve—whether fuel prices fall, whether demand rebounds. But there is no timeline, no promise. For the communities around Wollongong that depended on those flights, the service simply stops.
Boyd's frustration extended beyond his own airline's balance sheet. He pointed out that Link has received no direct support from federal or state government, even as other carriers have been propped up. In February, the Commonwealth announced a $5 million package for regional airports affected when Regional Express collapsed. Rex itself received far more: a $60 million commercial loan and a restructuring of $108 million in existing debt as part of its sale to Air T. Boyd saw the disparity as unfair. "It's completely unfair that one airline gets propped up and the rest of us are out there on our own," he said. The fuel crisis, he noted, was not unique to aviation—trucking, logistics, any industry dependent on fuel was suffering the same squeeze.
Boyd also raised a softer complaint: Shellharbour Airport lacks the profile of other regional hubs. Newcastle and Dubbo actively promote their air services, he said. Wollongong, the nearest major city, has done little to champion Shellharbour's connectivity. "It would be great if Wollongong could pitch in and help Shellharbour promote the service," Boyd said, "because it is good for Wollongong to have that service out of there."
Local officials acknowledged the blow without surprise. Wollongong's Lord Mayor, Tania Brown, called the suspension "not unexpected" given the global fuel pressures rippling through regional aviation. The city council has promoted Shellharbour through tourism channels, she said, but the economics had simply become untenable. Federal MP Carol Berry, representing Whitlam, said the move was disappointing and noted that the Albanese government is engaged with the aviation sector on jet fuel supply issues tied to Middle East tensions, with an emphasis on keeping regional communities connected.
Link Airways will continue operating routes across New South Wales, Victoria, and Queensland. It announced a new service between Canberra and Launceston even as it pulled back from Shellharbour. But for passengers in the Illawarra region, the calculus has shifted. The only commercial airline serving their airport has decided the route is no longer worth flying.
Notable Quotes
Particularly Shellharbour, we know that the market down there is quite price sensitive and the numbers last month were just shocking.— Jeff Boyd, Network Strategy Manager, Link Airways
There's no direct support for us at this time from the federal or state government. It's completely unfair that one airline gets propped up and the rest of us are out there on our own.— Jeff Boyd, Link Airways
The Hearth Conversation Another angle on the story
Why did Link Airways decide now was the moment to suspend? Was there a specific trigger?
It wasn't one thing—it was the weight of everything at once. Fuel costs doubled because of the Middle East conflict. Passenger numbers collapsed. They raised fares slightly, but it wasn't nearly enough to bridge the gap. They were losing tens of thousands a day. At some point, you can't keep burning money.
But they framed it as a suspension, not a closure. Do they actually expect to come back?
That depends on two things happening: fuel prices falling and people wanting to travel again. Boyd said it would depend on whether conditions improved, but he didn't set a timeline. For the people relying on those flights, a suspension with no return date feels a lot like an ending.
What struck me in the reporting is Boyd's complaint about government support. He felt singled out?
Exactly. Rex got $60 million in loans and debt restructuring. Regional airports got a $5 million package. Link got nothing. Boyd saw it as arbitrary—one airline gets rescued, the rest are left to fend for themselves. He wasn't wrong to feel the unfairness.
Is this just about Shellharbour, or is regional aviation in broader trouble?
It's broader. Every airline using fuel is hurting. The Lord Mayor said similar pressures are hitting regional networks everywhere. But Shellharbour is particularly vulnerable because it's small, it's price-sensitive, and—Boyd's point—it doesn't have the local backing that other regional airports do.
What does this mean for people who actually live there and need to fly?
They lose their only commercial air service. No flights to Melbourne or Brisbane. They can drive, or fly out of Sydney, but that's not the same. The connectivity is gone, and there's no guarantee it comes back.