Most likely yes. They have pulled all UA routes. Try Wizz from KTW. It's 2x weekly in winter, 3x in summer season.

If you must fly, you have LOT with short connections, otherwise you've got the direct train to Przemysl Glowny and then onwards to Krakow. If you choose KTW you'll need to make your way to KRK using one of the minibus operators like Matuszek (50zl) or rent a car. An Uber is about 350-400Zl. Once you have faffed with all that, I'd be tempted to just take LOT or the train to KRK.

Of course nothing is as convenient as a 35 min flying time, LWO-KRK.