Around 25 staff at Kerry Airport are to be temporarily laid off, due to the decision by Ryanair to cancel flights in and out of the location for four weeks.
However, the airport will remain open throughout the remainder of the Level 5 restrictions and beyond to service the sole remaining Public Service Obligation route between there and Dublin.
"Every effort has been made until now to minimise the impact of the financial losses associated with this downturn in activity," said John Mulhern, the CEO of Kerry Airport.
"Unless we take this action, Kerry Airport will not be in a financial position to withstand this prolonged decline caused by the Covid-19 pandemic.
"Every avenue to prevent the decisions I now make have been exhausted and I sincerely thank every one of my colleagues for the efforts they have made to keep all our operations in place since March."
The layoffs will begin on 16 November and will continue for four weeks at least, with the airport saying the period may be extended.
The 25 layoffs represent around half the workforce at the airport, which fluctuates depending on seasonal demand.
The remaining employees will continue to work multiple roles in order to keep the facility open.
"I fully understand how upsetting this news is for everybody and this is certainly a day we all fought so bravely to avoid," Mr Mulhern said.
The airport said it will make every effort to get employees back working as soon as possible.
Last month, Ryanair said it would cease all flights in and out of regional airports here for a month from 14 November to 12 December as a result of cuts to capacity on its network due to Covid-19 restrictions.