Airline flybmi has suspended flights and is filing for administration, blaming uncertainty around Brexit.
The airline, which had operated 17 regional jet aircraft on routes to 25 European cities, said all flights were cancelled from Saturday.
Difficulties have included increases in fuel and carbon costs, as well as challenges “particularly those created by Brexit”, a statement on the airline’s website said.
A total of 376 employees based in the UK, Germany, Sweden and Belgium are employed by bmi Regional.
The firm operated five flights a week between Aberdeen and Oslo and six flights a week to and from Bristol.
The next flight by the airline to depart from Aberdeen was the 11.05am to Oslo tomorrow morning.
The Civil Aviation Authority announced the FlyBMI had suspended operations shortly before 6.50pm.
— UK Civil Aviation Authority (@UK_CAA) February 16, 2019
A spokesperson for FlyBMI said: “It is with a heavy heart that we have made this unavoidable announcement today.
“The airline has faced several difficulties, including recent spikes in fuel and carbon costs, the latter arising from the EU’s recent decision to exclude UK airlines from full participation in the Emissions Trading Scheme.
“These issues have undermined efforts to move the airline into profit.
“Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe and lack of confidence around BMI’s ability to continue flying between destinations in Europe.”
The statement added: “Additionally, our situation mirrors wider difficulties in the regional airline industry which have been well documented.
“Against this background, it has become impossible for the airline’s shareholders to continue their extensive programme of funding into the business, despite investment totalling over £40 million in the last six years.
“We sincerely regret that this course of action has become the only option open to us, but the challenges, particularly those created by Brexit, have proven to be insurmountable.
“Our employees have worked extremely hard over the last few years and we would like to thank them for their dedication to the company, as well as all our loyal customers who have flown with us over the last six years.”
British Airline Pilots’ Association (Balpa) general secretary Brian Strutton said: “The collapse of FlyBMI is devastating news for all employees.
“Regrettably Balpa had no warning or any information from the company at all.
“Our immediate steps will be to support FlyBMI pilots and explore with the directors and administrators whether their jobs can be saved.”