XL Leisure Group, the third largest tour operator in the United Kingdom, grounded all flights this morning after going into administration last night.
The collapse has left UK and Irish passengers stranded at more than 50 destinations across Europe, America and Africa.
The company blamed volatile fuel prices, the economic downturn, and a consequent inability to obtain further funding.
Thousands of travellers with plans to travel in the coming weeks and months have been left without a holiday.
XL’s demise is the latest blow to a struggling travel industry and follows the collapse of budget airline Zoom last month.