Struggling airline Flybe has entered administration, putting 2000 jobs at risk.
The carrier narrowly avoided going bust in January but has continued to lose money since then.
A drop in demand caused by the coronavirus has resulted in all flights being grounded, while customers due to fly with the airline have been told not to travel to the airport as it cannot arrange alternative flights.
The operator announced in the early hours of Thursday it had ceased trading with immediate effect and that administrators had been appointed.
Crisis talks were held throughout Wednesday to try to secure a rescue package, but no deal was agreed.
All Flybe flights and those operated by sister airline Stobart Air have been cancelled, the Civil Aviation Authority said in a statement. Flybe was bought by a consortium of Virgin Atlantic, Stobart Group and Cyrus Capital in February 2019, after running into earlier financial problems.
In a statement, chief executive Mark Anderson said the company had made “every possible attempt” to avoid collapse but had been “unable to overcome significant funding challenges”.
“The UK has lost one of its greatest regional assets,” Mr Anderson said.
“Flybe has been a key part of the UK aviation industry for four decades, connecting regional communities, people and businesses across the entire nation.
“I thank all our partners and the communities we have been privileged to serve. Above all I would like to thank the Flybe team for their incredible commitment and dedication.”
Several Flybe flights were cancelled on Wednesday, including a number from Glasgow, with the carrier facing an uncertain future.
A spokesman for AGS Airports which owns and manages Aberdeen and Glasgow airports, said: “The loss of Flybe is a devasting blow for the airline’s employees and the tens of thousands of passengers who relied on its routes.
“It unfortunately brings into stark focus the fragility of the UK’s domestic connectivity. Earlier this year the UK Government committed to levelling up all regions of the UK by conducting a review of regional connectivity.
“It’s vital this work is progressed as a matter of urgency and reforming Air Passenger Duty (APD) is part of that review. We are already speaking to other airlines about backfilling the routes operated by Flybe for which there is clear demand.
“In the meantime, the advice to passengers who were scheduled to travel with Flybe is not to travel to the airport and to visit the Civil Aviation Authority’s website for further advice.
“Any passengers due to travel with Flybe’s franchise partners: Blue Islands and Eastern Airways, are advised to contact their airline to confirm their travel arrangements.”