Iceland's budget carrier WOW Air said it had ceased operations and cancelled all flights on Thursday, stranding thousands of passengers.
The collapse of the troubled airline, which transports more than a third of those travelling to Iceland, comes after buyout talks with rival Icelandair collapsed earlier this week.
"All WOW Air flights have been cancelled. Passengers are advised to check available flights with other airlines," the carrier said in a statement.
"Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances. Information on those airlines will be published, when it becomes available."