Bearskin Airlines has issued a number of layoff notices to its employees in Sioux Lookout and Thunder Bay.
Bearskin President Harvey Friesen says 5 to 10 percent of their workforce will be temporarly laid off.
The company says the downturn in the economy, the events of 9-11, the OPSEU strike, and the new federal security charge all played a factor in the layoffs.
Friesen stresses the workers will be called back as soon as things turn around.
He adds the airline may have to reduce the frequency of some flights, however no routes will be axed.