A cut in air passenger duty (APD) on long haul flights out of Belfast was announced by UK Chancellor George Osborne today (September 27).
Direct long haul flights from the province will be charged at short haul rates of £12 for economy and £24 for business and first c lass.
Previously the rates were £60 for economy and £120 for business.
The new charges will come into force on November 1.
Continental Airlines currently runs a daily service from Belfast to New York Newark.
There has been industry speculation that the American carrier was ready to drop this service.
The cut in APD might also encourage other airlines to start long haul services from the province.
Announcing the change, Osborne said: “The Government has taken proactive measures to protect the only direct long-haul service operating from Northern Ireland and with it the jobs of those who serve the Belfast route.”
Continental recently told MPs that the tax on its daily flight out of Dublin was just €3.
It said it had been absorbed the cost of the tax in Belfast to stop passengers switching to the Irish airport.
The airline said this was costing it £3.2m a year which meant the route was not viable.