The airline has based an aircraft and crew in Jersey since last June, when VLM began flying between the Island and the Docklands airport.
But it has decided to move the aircraft to London and reduce the number of flights from three rotations each weekday to just one.
Eleven Jersey-based aircrew have been offered redeployment elsewhere.
The VLM flight will now arrive in Jersey at 10.10 am, leaving for City at 5.50 pm.
The airline has admitted that the route lost £1m in its first year and has criticised the high cost of flying to Jersey, particularly when an aircraft lands after the Airport’s official closing time.
Commercial director Peter Kenworthy said: ‘The route has always lost money, and we also faced some very aggressive pricing from Flybe and BA between the Island and Gatwick.
So for us to maintain our market share we had to match these fares, and I’m afraid it just wasn’t economically viable.
We were certainly filling seats, but the prices we were offering over the summer – when airlines traditionally achieve high yields – were not sustainable.’
