Viking Airlines AB has suspended flights from the UK but claims that the move is only temporary.
The Swedish-based airlines, which operated holiday flights from London Gatwick and Manchester, said in a statement that it was planning a restructure that would take three months.
It has returned all four leased aircraft to their owners, but the airline claimed no customers had been left stranded.
It added: " “As part of a plan to downsize the Swedish airline Viking AB for the winter season, three leased Boeing 737-800s and a single Boeing 737-300 have been returned to their respective lessors.
“As a result, this week, the airline has temporarily ceased operations, but all contracted flying is covered for the remaining season. Importantly, no-one has been or will be stranded.
“While job losses are, unfortunately, inevitable in the UK, the intention is to take the next three months to reorganise and restructure Viking AB so as to be in a position to add new aircraft for the summer 2011 season."
A spokesman for the airline said he was expecting an updated statement today.
By Linsey McNeill
