Doncaster Sheffield Airport is to close, putting 800 jobs at risk.
The owner of the Peel Group Steven Underwood said the high running costs of the airport were the main reason for the closure, which means the 800 staff face an uncertain future.
It will close at the end of October.
Oliver Coppard, the Mayor of South Yorkshire, said he is “devastated” by the “appalling” decision.
He prompted the owners to “do the right thing” and reconsider the relocation.
He said the airport has received public funds for many years and an offer to continue that support had been rejected.
He said: “I’m devastated by today’s announcement by Peel and angry about the impact it will have on our communities.
“The fact that they chose to turn our offer down simply confirms what many of us suspected: that Peel was never serious about finding an alternative and safeguarding the future of DSA.
“It is still not too late for them to do the right thing; for them to reconsider their decision for the sake of those employees, businesses and communities directly impacted by this appalling decision.”
The Labour mayor stated that the next step would be to request that the government intervene and keep the airport open.
Peel said it received a letter from the mayor’s office earlier this month stating that a group interested in purchasing the airport had expressed interest, but the company had not received any additional information about this potential buyer.
But Peel said that would be an inappropriate way to spend public money “against the backdrop of an unviable, loss-making operating business”.
Steven Underwood, Peel Group chief executive, said: “We will not accept any public sector grant to cover the costs of an airport that is not viable due to its lack of adequate forward revenues and high operating costs.”
Peel converted the old RAF Finningley airbase into the airport, which opened in 2005.