Transatlantic budget carrier Zoom Airlines has suspended all its flights after admitting it is applying to go into administration.
All passengers due to fly with the airline have been advised to seek bookings with alternative airlines.
It comes after Zoom planes were held at Glasgow and Cardiff airports.
UK-Canadian Zoom blamed its problems on the "horrendous" price of aviation fuel - which had added $50m to annual fuel bills - and the economic slowdown.
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It operated flights from London Gatwick, Glasgow, Manchester, Cardiff, Belfast, Cardiff as well as Paris and Rome.
And it flew to eight destinations in Canada, New York, San Diego, Fort Lauderdale and Bermuda.
'Desperately sorry'
"We deeply regret the fact that we have been forced to suspend all Zoom operations. It is a tragic day for our passengers and staff," said Zoom founders Hugh and John Boyle.
"We are desperately sorry for the inconvenience and disappointment that this will cause passengers and those who have booked flights.
"We have done everything we can to support the airline and left no stone unturned to secure a re-financing package that would have kept our aircraft flying."
They added that hopes of securing a new investment package to ensure future operations had failed, meaning administration procedures had to begin.
The announcement came after one of its planes was detained at Glasgow Airport on Thursday for non-payment of air traffic control charges.
Meanwhile passengers on a flight from Cardiff were told to get off their Zoom plane, which was then impounded.
A number of other budget long-haul carriers have gone into administration in recent months including Hong Kong-to-London carrier Oasis and business class transatlantic firm Silverjet.
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(BBC)
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