Budget carrier SkyEurope is the latest victim of the downturn in the travel industry, ending operations yesterday due to ongoing financial problems.

Amidst the collapse which has left many passengers stranded overseas, the troubled airline, which flew to destinations across Europe including Luton Airport, stopped trading after airports banned SkyEurope due to non-payments of debts.

Despite the collapse of the airline, passengers who have booked flights with SkyEurope may be entitled to a refund, depending on how they purchased the ticket.

SkyEurope serviced several eastern European destinations such as Kosice, Bratislava, Vienna, Prague, and was popular with city break travellers departing from London’s Luton airport.

The airline first showed clear signs of trouble when it was forced to cancel services from certain airports this week due to unpaid debts.

The airline was banned from several airports including Vienna and faced a handling ban at Prague unless payments were received.

SkyEurope announced today that all flights are cancelled and the website regretfully apologises for the inconvenience to customers.

The airline has been in financial trouble for a period of time now, but in July claimed it found an investor.  SkyEurope blamed the global recession and the downturn in the travel industry for its collapse, which saw the aircraft reduce its fleet from 15 to five aircraft over the last year.

According to their website: ‘SkyEurope suspends its operations’ , and informs passengers who purchased tickets over with a credit card and over £100 can receive a refund from their card provider.