Primera Air has confirmed it has filed for bankruptcy and ceased operations after "unforeseen misfortunate (sic) events" caused the carrier to run into trouble.
The Dutch-registered airline’s owner was allegedly seeking additional financing but was unable to secure it in time to save operations.
Primera Air faced delays in the delivery of its new Airbus aircraft, which was one of the reasons the carrier gave for cancelling all of its planned flights from Birmingham.
The carrier also offered transatlantic flights from Stansted and a route from Manchester to Malaga was due to start later this month.
Primera Air has been operating for 14 years and says it lost €10 million in 2017 after losing an aircraft to "corrosion problems".
The board of the airline has confirmed the news, saying it cannot continue operations without additional financing.
Passengers with forward bookings with the airline are advised they will need to contact the company directly to request a refund, while those who booked directly using a debit or credit card may be able to make a claim with their card issuer.
Those left stranded away from home will have to make their own alternative arrangements for their return journey and are advised to contact their insurer or travel agent for assistance.
Norwegian has announced it is offering stranded Primera Air passengers reduced fares on flights between New York JFK and London and from Newark, JFK and Boston to Paris up to 14 October. It claims the fares represent a discount of 50 per cent.