Hull Trains has given up all its services because of the “unprecedented circumstances” between the coronavirus pandemic.
The company said that the number of passengers has “decreased significantly” since the government blockade came into effect.
CEO Louise Cheeseman said it was a difficult but necessary decision to safeguard the future of the company.
There will be no service from Monday until the restrictions on the pandemic are lifted.
Hull Trains, believed to be the smallest British railway company and employing approximately 130 employees, says that no additional financial support from the government has been offered, which the railway operators in franchises have.
Union executives told the company that they expect the wages of the company’s workers to be “100%” guaranteed.
Cheeseman said: “We have explored all the ways to try and operate the trains, but unfortunately it is not currently economically profitable to manage our services.
“We intend to resume operations as soon as possible.”
He said he hoped “our passengers” would understand the decision after what was “a very difficult week”.
“The move protects the long-term future of our employees’ hulls and jobs, which is important as it will allow us to quickly restore operations whenever possible,” he added.
Mick Cash, Secretary General of the Railway, Maritime and Transport Union, said: “This decision concerns 130 members of the railway staff in the hull area and must be considered a top priority.
“We expect society and the government to guarantee wages at 100% and not a reduced rate and we also expect jobs, services, pensions and conditions for railway staff to be fully protected during this crisis.”