Iceland's budget carrier WOW Air said it had ceased operations and cancelled all flights on Thursday, potentially stranding thousands of passengers.
The collapse of the troubled airline, which transports more than a third of those travelling to Iceland, comes after buyout talks with rival Icelandair collapsed earlier this week.
"All WOW Air flights have been cancelled. Passengers are advised to check available flights with other airlines," the carrier said in a statement.
"Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances. Information on those airlines will be published, when it becomes available."
WOW Air, founded in 2011, exploited Iceland's location in the middle of the North Atlantic to offer a low-cost service between Europe and North America as well as tapping into a tourist boom to the volcanic island.
However it had flown into financial trouble in recent years due to heightened competition and rising fuel prices, and had been searching for an investor for months.
On Monday WOW Air said it was in talks to restructure its debt with its creditors after Icelandair ended brief negotiations over buying a stake in the no-frills airline.
WOW Air was left needing $42 million to save the company, according to the Frettabladid newspaper.
The privately-owned airline has undergone major restructuring after posting a pre-tax loss of almost $42 million for the first nine months of 2018.
It has reduced its fleet from 20 to 11 aircraft, eliminating several destinations, including those to the US, and cutting 111 full-time jobs.
A report by a governmental work group has warned that a WOW Air bankruptcy would lead to a drop in Iceland's gross domestic product, a drop in the value of the krona and rising inflation.
French carrier Air France will offset the carbon dioxide emissions of its 500-odd daily internal flights by 2020 at a cost of millions of euros, the company's CEO ...
Mumbai's main airport re-opened Friday, officials said, three days after the heaviest monsoon rains in a decade killed scores and caused travel mayhem across weste...
Abu Dhabi's giant Etihad Airways and Sharjah's low-cost carrier Air Arabia announced Wednesday an agreement to launch a new low-cost airline based in the United Arab ...
Switzerland's main airline said that it expected more than half its fleet of Airbus A220s to resume flying on Wednesday after checks proved their engines were in "per...