AIR BERLIN plans to close its offices on the Son Castello Industrial Estate before the end of the year.
The airline has higher passenger figures than any other at Palma Airport, travelling mainly between Germany, Austria and Switzerland and the southwest of Europe and North Africa.
Staff have been offered the possibility of going to Berlin to work.
Air Berlin will cancel flights to Alicante, Sevilla, Valencia and Ibiza at the beginning of the year, followed by those to Bilbao, Alicante, Valencia, Jerez, Sevilla and Faro in Portugal.
After that, it will operate with other airlines in the One World Alliance, such as Iberia.
They have blamed the decision on the high competition in the Spanish market, although unofficial sources talk of a company which is on the brink of bankruptcy.