The FAA shut down the airline, which flies to several locations throughout Southeast Alaska, over safety concerns.
The FAA sent a letter to L.A.B. officials stating the airline's operating certificate had been revoked.
L.A.B. will have to reapply for a new certificate before flights can continue.
The FAA did not cite specfic reasons for the shutdown, though L.A.B.'s safety record may be an indicator of why.
Since 1995, three L.A.B. flights have resulted in 14 deaths.
More recently, the National Transportation Safety Board reported last month that an inadequate inspection led to a 2007 L.A.B. flight that resulted in an emergency landing and a fire that almost claimed the lives of a pilot and two passengers.