Flight-only specialist Fone n Fly has ceased trading, according to the Civil Aviation Authority.
Founded four years ago, the West London-based business sold mainly long-haul, discounted flights via the website fonenfly.co.uk,
The CAA confirmed the company was an ATOL holder and airlines should honour bookings of those customers already overseas.
However, customers are being advised to check with their airline before travelling to the airport. If the airline won’t honour the booking, they will have to buy a new ticket home and claim a refund from the airline, said the CAA.
It said it would not provide assistance or consider claims until passengers had contacted their airline.
Passengers who have paid in full and received a ticket should still be allowed to travel but they should verify this with the airline.
The CAA said it would only consider claims where the airline has refused to honour the booking or wher a ticket has not yet been issued.
Customers who paid by credit card whose bookings have been rejected by airline have been told to contact their credit card issuer.
