WIZZ Air will start to offer flights from Luton airport in London to Gibraltar on December 11.
The British airline will fly twice a week to the Mediterranean hotspot as well as Madeira.
With air fares starting from £24.99, the Wizz Air will compete with current carriers Easyjet and British Airways.
It expects to offer flights to the Rock which offers 300 days a year, while still having no quarantine for UK passengers on their return.
“I’m delighted to welcome a new airline to Gibraltar and to see the resumption of services from Luton for this winter,” said Minister for transport Vijay Daryanani.
“In these challenging times it is encouraging to see an operator such as Wizz Air UK putting their faith in Gibraltar as a destination.
“The service will open up the North London catchment area once again, providing more options to our existing air services.”
He said the airport had operated despite the COVID-19 pandemic, still operating flights to the UK.
“We hope that this service and Wizz Air UK’s relationship with us will grow and evolve,” said the minister.
“This Government is committed to attracting new carriers and to the expansion of air services.
“We will continue to pursue these, even whilst facing one of the most testing times the travel and tourism industry has ever encountered.”
Wizz Air will be flying from Luton to Gibraltar on Mondays and Fridays from December 11.
Owain Jones, Managing Director of Wizz Air UK added: “We are delighted to be announcing yet more new routes for our UK customers, especially with the winter months looming.
“That’s why we are wasting no time by introducing exciting holiday destinations to our UK network, with genuinely affordable fares.
“They are travelling with an airline that has led the industry with enhanced health and safety measures, and that operates with the lowest CO2 emissions in Europe.
“We’re looking forward to welcoming passengers on board to experience our excellent service.”
Wizz Air, which operates 134 Airbus A320 and A321 planes, was voted one of the ten safest airlines in the world recently.