Welshpool Air Show has been axed this year because of a lack of cash to bring the Red Arrows display team to the event.
Organisers said that they had failed to find a sponsor to cover all of the show's costs.
Welshpool Town Council, which organises the event, had hoped the Red Arrows team would perform at the show, due to take place in July, but budget cuts have forced the Royal Air Force to be more prudent with its spending.
Robert Robinson, Welshpool's town clerk, said: "We have been out seeking sponsorship to hold this year's event, which we had hoped to hold in July, but we have unfortunately now had to cancel the event because of the lack of money.
"Unfortunately this is a sign of the times and the RAF can't continue to offer free air displays."
Mr Robinson added: "It's something the country is going to have to get used to because there just isn't any money about any more because too much has been spent in the past.
"We have looked at several options to try and make it happen but it was proving too expensive."
He said: "It is disappointing but at the end of the day it is important that our troops are properly equipped on the front line so cuts have to be made elsewhere."
Mr Robinson added that Welshpool would instead be holding a model air show on July 9 and 10.