A second airline has folded just days after loss-making Flybe fell into administration.
More than 400 staff face losing their jobs due to the collapse of Norwegian low cost carrier Flyr.
The company had tried and failed in recent days to secure 330 million Norwegian crowns ($33 million) of funding, Reuters reported.
The Oslo-based airline, launched less than two years ago, confirmed that it will file for bankruptcy today (Wednesday) after failing to raise fresh capital.
A notice on the company’s website said: “Flyr was unsuccessful with the new financial plan and the board concluded on Tuesday evening that there are no alternatives for further operation.
“The company will file for bankruptcy on Wednesday morning. Flyr has now ceased trading and all flights are cancelled and will not be rescheduled.”
Flyr operated a fleet of 12 Boeing 737s to a range of European destinations but had cut back services during the winter and only had one flight scheduled for today between the Norwegian capital and Gran Canaria.
The airline had been due to launch a new route between Gatwick and Oslo in March and previously operated flights to Edinburgh last year, according to aviation data firm Cirium.
The statement added: “Many thanks to everyone who has chosen to fly with us over the past year and a half. We will miss you all from the bottom of our hearts and deeply apologise to everyone affected by the fact that we now have to go in for landing.
“We encourage everyone who has booked a ticket with us to contact their credit card company for a refund.
“The bankruptcy trustee will take over all responsibility for Flyr going forward, and will share contact information on www.flyr.com as soon as it becomes available.”