International Airlines Group (IAG) has confirmed that the European arm of its low-cost carrier Level has ceased trading and is to file for insolvency.
The Vienna arm of the airline was launched in 2018, following the launch of its low-cost long-haul carrier in 2017, and operated out of Luton.
It is due to appoint an administrator in the coming days, and the long-haul airline is understood to be continuing services.
Level’s short-haul flights have been grounded since March as travel restrictions were implemented across Europe.
IAG is also the parent company of British Airways, Aer Lingus, Iberia and Vueling.
Level Europe said: “Level Europe, the Austrian based low-cost carrier previously named ANISEC, intends to file for insolvency.
“The airline, whose short-haul flights have been grounded since March 2020, has ceased trading with immediate effect.
“Once insolvency proceedings are filed, an Austrian court will appoint an administrator.”
Customers with flights booked through channels other than the Level Europe website are advised to contact airline partners directly to check if their travel plans have been affected, and their options.
Passengers booked via the Level Europe website have been asked to contact the court’s appointed administrator for more information.