Wow Air has stopped flying, leaving thousands of passengers stranded.
In the early hours of Thursday morning the Icelandic airline said it had cancelled the day’s flights while completing an agreement with a group of investors over raising new funds.
But it later announced it has “ceased operation”, with all future flights cancelled.
The carrier connected Europe and North America via Reykjavik, with UK flights serving London Gatwick, London Stansted and Edinburgh.
Wow Air said in a statement: “Wow Air has ceased operation. All Wow Air flights have been cancelled.
“Passengers are advised to check available flights with other airlines.
“Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances.”
It added: “Passengers may also be entitled to compensation from Wow Air, including in accordance with European regulation on Air Passenger Rights.
“In case of a bankruptcy, claims should be filed to the administrator/liquidator.”