SkyValue airlines is canceling its summer schedule out of Gary/Chicago International Airport and will cease flying May 6.

The airline plans to again fly to vacation spots from Gary this winter, but increased costs and thin summer bookings sunk plans to fly year-round, according to SkyValue CEO Darrell Richardson.

"Fun to the sun was great in the winter, but when we get into summer, it's not working," Richardson said on Friday.

All signals appeared to be positive for the summer program just a few weeks ago.

SkyValue only planned to fly until April when it started up in December. But within weeks, the airline announced it would fly year-round out of Gary due to strong demand. In March, it began taking reservations through October.

The news that SkyValue would not fly out of Gary was not received by airport and city officials until Friday. It left them disappointed but hoping for the best.

"All I can say is a little rain is falling on the airport, but the city of Gary and the airport will not drown because of this," said Mayor Rudy Clay.

Clay said SkyValue had proved people will fly out of Gary, which should show other airlines the Gary airport is viable.

Airport director Chris Curry said it was only about 10 days ago he learned there might be a problem with the summer schedule, but no official word of an actual pullout came from SkyValue until Friday.

"I am disappointed SkyValue could not succeed as a year-round program, but we are optimistic that maybe their niche could still be a winter program," Curry said.

SkyValue's ditching of its summer schedule again leaves the Gary airport without an airline.

Hooters Air ended flights from Gary and other airports nationwide in January 2006. Before that, Southeast Airlines flew out of Gary from February 2004 until it went belly up in November of that year.

SkyValue boarded its 10,000th passenger earlier this month, making the airport eligible for $1 million in Federal Aviation Administration funds. The airline also proved Phoenix is a place people want to fly, Curry said.

In addition to Phoenix, the airline flies to Las Vegas; St. Petersburg, Fla; and Orlando, Fla.

SkyValue owes the airport $325,000 the airport authority advanced the airline for advertising, Curry said. He said SkyValue has been a "straight-shooter" with the airport and he fully expects the money to be paid back.

Increased fuel costs and aircraft leasing fees combined with the slim summer bookings led parent company CFirstClass to cancel the summer program, Richardson said.

The move will leave thousands of passengers who have already booked flights looking for refunds.

Richardson said information on obtaining full refunds was expected to be posted on the SkyValue Web site at www.flyskyvalue.com as early as Friday night.

People with reservations will be notified almost immediately of the cancellations via e-mail or phone, according to SkyValue vice president Gabrielle Griswold. Full fare refunds will be credited to credit cards within seven to 14 days.

If people fly out of Gary on SkyValue in the next week and had reservations for the return trip, that fare will also be refunded.