SkyEurope files for bankruptcy

Low-cost Slovakian carrier SkyEurope has become the latest airline to go under, after cancelling its flights from airports in Manchester and Luton with no notice. The move left thousands of holiday passengers stranded at airports in Europe, although airlines in Austria offered to return passengers in the country home, and others, including easyJet and Ryanair, offered customers cheap replacement tickets. It said it was unlikely it would be able to offer customers refunds.

The airline focused on destinations like Vienna, Prague and Bratislava, but made increasing losses, even after a change of management two years ago. The writing was on the wall when it reduced its fleet from 15 aircraft to just five last year and made further losses at the start of the year. After entering bankruptcy protection in June it looked set to be rescued by an Austrian private equity group but could not effect a restructuring plan quickly enough.

SkyEurope is just the latest of 80 carriers to have gone bankrupt this year and the news comes as the International Air Transport Association announced that the world's 54 biggest airlines slid to a $2bn loss in the summer quarter. That loss is double the figure last year and comes at the industry’s busiest time as a result of falling fares and damaging oil prices. Iata is now estimating an annual deficit of $9bn for the industry, with the organisation’s economist Brian Pearce forecasting that fares will "continue to plummet".

WHAT THEY ARE SAYING:Sarah Arnott in the Independent: "SkyEurope's failure comes as no surprise to industry-watchers. The company started in 2002 and grew quickly – boosted by the expansion of the EU in 2004….but rapid growth never turned to profits." ·