New $20 million terminal opens at airport in North Bend, Ore., just as Horizon Air drops its service to Portland because of fuel costs

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Air travelers along Oregon’s south coast are celebrating the opening of a new $20 million regional air terminal in North Bend.

But the future isn’t all rosy.

Just days before the Monday’s opening celebration of the new terminal at the Southwest Oregon Regional Airport, Horizon Air said it was ending the region’s direct flights to Portland as of October.

Horizon cited high fuel costs as a factor in its decision. Horizon will also drop its Klamath Falls-Portland flights.

Horizon’s departure from North Bend leaves the new terminal with one carrier and two flights daily, direct to San Francisco via SkyWest. However, private jets use the airport for access to the Bandon Dunes Golf Resort.

Newport and Astoria along the Oregon coast have been awarded state grants to help them start commuter service to Portland in the coming months.