Airline Blue Islands has suspended trading, with all future flights cancelled, the company has confirmed.
In a statement, the airline said passengers should not travel to airports unless they have made alternative travel arrangements.
The airline operated flights to various locations in the British Isles, and also to Bruges and Paris.
The has approached the Civil Aviation Authority for comment.
The Channel Islands-based company, which has about 100 staff, borrowed £8.5m from the Government of Jersey to help it secure its services during the Covid-19 pandemic.
A report in August revealed the outstanding capital balance was still £7m in June – more than halfway through the loan period.
In a statement on Friday, the airline said all flights it operated had been cancelled.
It directed anyone who had made bookings with Blue Islands directly to contact their bank or provider of the card used to make the booking.
It said for bookings made with its codeshare partner Aurigny, travelling on a Blue Islands flight, people should contact Aurigny, as some flights may still be operating.
“We deeply regret the inconvenience that this will bring to your travel plans” it said.
