Adria Airways filed for bankruptcy on Monday September 30 after attempts to rescue the ailing carrier failed.
The Slovenian airline was in “active discussions” with unnamed potential new owners and major creditors up to the weekend.
More: Adria Airways flights grounded in cash squeeze
However, Adria had cancelled more than 400 flights in the run up to declaring insolvency.
In a statement, the airline said: “The company announces that it will cancel all scheduled flights due to initiation of bankruptcy proceedings . . . because of the company’s insolvency.”
Details of Adria Airways’ losses were not disclosed, but reports in Slovenia put the carrier’s debts at about €90 million.
Adria was owned by German investment firm 4K Invest which acquired the former flag carrier in 2016.
The airline subsequently sold off its fleet and had been operating leased aircraft.
Slovenia’s economic minister Zdravko Pocivalsek said the government would consider whether to help set up a new airline to replace Adria as its collapse would damage the country’s economy and tourism.
However, Pocivalsek dismissed talk of a bail-out for Adria as “irresponsible”.
The airline had more than 500 staff and a fleet including three Airbus A319s, nine Bombardier CRJ900s, two Bombardier CRJ700ERs and six Saab 2000s.