All Germania flights have been grounded as the airline filed for insolvency.
The Berlin-based carrier blamed soaring fuel costs, the weakening of the value of the euro, aircraft maintenance and delayed deliveries.
The airline operated a fleet of 37 aircraft mainly carrying German holidaymakers routes to destinations in the Mediterranean, North Africa and the Middle East.
CEO Karsten Balke said: “Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion.
“We very much regret that consequently, our only option was to file for insolvency.
“It is of course the impact that this step will have on our employees that we regret the most. All of them as a team always did their best to secure reliable and stable flight operations – even in the stressful weeks behind us. I would like to thank all of them from the bottom of my heart.
“I apologise to our passengers who now cannot take their Germania flight as planned.”
The airline said in a statement: “Germania’s short-term liquidity need emerged mainly due to unforeseeable events such as massive increases in fuel prices last summer and the simultaneous weakening of the euro against the US dollar, considerable delays in phasing aircraft into the fleet and an unusually high number of maintenance events that the airline’s aircraft required were major burdens for the company.”
Passengers who booked Germania flights as part of a package holiday were advised to contact tour operator in to organise substitute carriage.
“For passengers who have booked directly with Germania, there is unfortunately no entitlement to substitute carriage,” the airline said.