Flylolo, the peak season-only flight company set up by Avro founder Paul Dendle, had to cancel four flights from Glasgow over the weekend.
Three of the flights had been due to take off on Friday morning and Saturday to Tenerife. The fourth had been due to fly to Lanzarote on Saturday.
Glasgow Airport told people booked on the flights not to turn up at the airport and Flylolo said it would issue refunds within 10 working days.
Some passengers had booked flights with Flylolo after losing their original flights when Thomas Cook collapsed.
One passenger, Chris McDonald, told the Daily Record that, after booking, he received a travel document with and ATOL certificate, but no flight information.
"We were told we’d be sent a PDF ticket but it never arrived. As the flight got closer, the company were saying they’d be here on Friday, then on Monday," he said.
Mr McDonald later told the BBC he had spoken to Paul Dendle personally, saying he ‘seemed to be the only one dealing with this’.
Dendle said the aircraft he thought the company had a firm contract on was withdrawn.
He said: "All clients’ monies are fully protected and held in a CAA trust and refunds will take 10 working days.
"I have been working 18-hour days to try and resolve this issue, but alas it was impossible.
"I apologise for the disruption and disappointment caused. I sincerely feel for the affected clients."
Flylolo also operates from Gatwick, Manchester and Southampton, specialising in peak season-only flights during the school holidays.
In April, FlyLolo announced it was cancelling flights from Southampton to Skiathos, due to start in June. At the time, Dendle said the owner of the Airbus 319 it had booked for the twice-weekly route, blamed uncertainty over Brexit.
