Citing continuing low passenger numbers, the airline has targeted Sept. 15 to end the service, pending approval by the Canadian Transportation Board.
"Simply put, there are too many seats for the size of the market," explains Kelly Kaylo, the airline's director of marketing and sales.
Canadian North currently flies into Fort Smith with a 51-seat F-28 Fokker jet.
Kaylo says there is only an average of 10 passengers travelling to Fort Smith on each flight.
She adds a company lease on an F-28 is ending and withdrawing from Fort Smith will allow the company to remove the aircraft from its fleet. "From a company perspective, we are right-sizing the fleet for the entire market."
Mayor Peter Martselos says he is shocked and extremely disappointed with Canadian North's decision.
"It's one step backwards," he says, noting it will hinder efforts to build the town's economy and promote tourism.
Martselos says there was no consultation, noting the decision came "out of the blue."
Town council was notified of the decision at an Aug. 6 meeting with airline officials.
Kaylo says the community was aware of the company's concerns, noting a public meeting was held last October when the service was cut back to four days a week.
While lamenting the decision, Martselos says he understands the move. "When businesses don't make money, they have the right to make decisions."
Canadian North is now talking with Fort Smith company Northwestern Air Lease Ltd. about filling in with expanded service.
"We won't remove our service until we are assured by Northwestern Air Lease that everything is in place," says Kaylo.
Northwestern Air Lease currently flies four days a week between Fort Smith and Edmonton Municipal Airport. General manager Gord Bush says the company will expand service to six days a week -- Monday to Friday and Sunday -- and land at Edmonton International Airport if the Canadian North withdrawal goes ahead.
Bush says the company will provide good service with a 16-seat Jetstream 31 turboprop. "It's quite a fast machine."
If demand warrants it, a second flight may be added to the route from the company's fleet of four Jetstreams, he says. "We certainly won't let the community down."
The company may also add extra staff. Martselos says Fort Smith is fortunate to have Northwestern Air Lease take over the run to Edmonton.
Canadian North service to Hay River from Edmonton will remain, and there will be a flight added to Yellowknife.
The elimination of the service to Fort Smith will mean the loss of one part-time and two full-time positions.