The airline, which has also been dealing with the fallout of the collapse of its former franchise partner Flybe, made the announcement on Wednesday evening and said flights would be cancelled with immediate effect.
It said it hoped to re-instate a full service on the route in April.
Any passengers affected are being offered alternative travel or a full refund.
Blue Islands chief executive Rob Veron said: 'There has been a sharp reduction in corporate travel to this typically popular business hub and it’s clear that the coronavirus is having an impact on worldwide travel.
'We have seen local airlines together with low cost and international carriers cancel flights and change their schedules in response to the impact of coronavirus. Many of our business customers have been told not to travel, and, of course, we are starting to see conferences and exhibitions cancelled.
'For the long-term health of local connectivity, we need to take decisive and swift action during this time, and this decision will result in very minimal customer disruption.'
There are no other changes to the airline's schedule currently, he added.
'We are focused on restoring our booking systems fully so that customers can benefit from dynamic pricing as soon as possible, and we are looking at strengthening our route network, whilst ensuring that we take sensible actions to ensure the sustainability of local travel.
'We would like to apologise to our customers for this inconvenience and we acknowledge it has been a very challenging time for local travel. The Blue Islands team is working hard to offer our customers the best service possible, but unfortunately, the impact of the coronavirus on travel is inevitable, however we sympathise with business leaders who must prioritise the health of their staff at this time.'