US Airways' direct flight to Baltimore has been terminated, Transport Minister Ewart Brown announced.

The carrier had been making service cuts in the wake of the September 11 attacks on the United States.

The daily flight to Baltimore was the most direct way to get to the prestigious Johns Hopkins hospital.

Minister Brown said that while some airlines may go out of business he was hopeful for an upturn in business after the industry reorganises itself.

Lawmakers in the US have approved a $15 billion financial aid package for the industry. Meanwhile Bermuda's hospitality industry, hugely dependent on airline service, is bracing for a long bleak winter.US Airways is still operating its daily direct flight to Philadelphia.