Seguro Holidays, which flies holidaymakers from airports in Kent and Ayrshire, has gone into administration.
It said its failure had been caused by the collapse of Futura, a Spanish airline which operated four fifths of its flights. The carrier blamed high fuel prices for its insolvency.
“Futura’s collapse was totally unexpected as an airline with over 30 planes, having a good reputation and being one of Spain’s respected airlines,” said Rachel Elliott and Richard Burke, Seguro’s directors in a statement.
Seguro’s clients, who are on holiday in Spain, the Canaries and Portugal, will be brought home when alternative flights can be found, with the cost being met under a bonding scheme administered by the Civil Aviation Authority. Those who have yet to travel will also have their money refunded.
As customers of a package tour firm, they will benefit from the protection which is not offered to passengers on airlines, which goes bust – such as Zoom, which failed last month.
This is because the Government refused to implement a one pound levy on all plane tickets to create an airline bond similar to that already in force for the package tour industry.