Cypriot budget airline Cobalt has become the latest airline to fall into financial difficulty.
On Wednesday the airline announced in a statement on its website that they had cancelled all flights for the foreseeable future.
The carrier has operated flights in and out of Cyprus since 2016 including flying holidaymakers to the island from Heathrow, Stansted, Gatwick and Manchester Airport as well as 23 destinations across Europe, as well as Russia and the Middle East.
In a later statement, media in Cyprus have reported that Cobalt said it had called in administrators after failing to secure long-term funding.
The statement read: “It is with great regret that we must inform you that Cobalt Air will cease all operations at midnight on 17 October 2018 and enter into administration process, after two years and three months of operations.
“It is a sad day for all the employees and passengers of Cobalt Air. The company has been working relentlessly during the past months to secure the long-term financing of the airline.”
Cobalt’s collapse comes at a turbulent time for the airline industry after the Danish budget carrier Primera Air collapsed earlier this month and UK regional airline Flybe warned of mounting annual losses on Wednesday, blaming weaker consumer demand and higher fuel prices.
The airline has six aircraft and around 200 staff and it is not yet clear how many customers will be affected by the flight cancellations.
Last year, Cobalt said it had carried 740,000 passengers in its first 16 months of operation. By contrast, Europe’s biggest airline Lufthansa carried about 130 million people last year.