Air Berlin, Europe’s tenth largest airline is set to end all services later this month as it admits defeat in staving off bankruptcy.

The carrier wrote to employees on Monday saying that continuing to fly will no longer be possible after October 28 unless circumstances change.

The carrier is currently in talks about selling parts of its business with Lufthansa, Europe’s largest carrier, and easyJet.

Air Berlin declared bankruptcy in August but under German insolvency rules that allow an orderly winding down has been allowed to carry on flying.

Attempts over the last six years to prop the airline up by Gulf carrier Etihad have failed. Etihad pumped £227 million into Air Berlin as recently as April.

Aviation analyst John Strickland told The Telegraph: “This has been expected for some time. It’s now a question of how much capacity will be picked up by Lufthansa and most probably easyJet, and how many jobs this will protect.”

Under European rules all customer who booked flights with Air Berlin after August 15, when it declared bankruptcy, will be refunded or booked on an alternative flight.

Those who booked before that date will be entitled to nothing.