Airline Flybmi has scrapped all of its flights after being plunged into administration.
The news tonight was greeted with shock by passengers, staff and industry colleagues.
It blamed Brexit and rising costs for its move.
A Flybmi spokesman said: "It is with a heavy heart that we have made this unavoidable announcement.
"The airline has faced several difficulties, including recent spikes in fuel and carbon costs, the latter arising from the EU's recent decision to exclude UK airlines from full participation in the Emissions Trading Scheme.
"Current trading and future prospects have also been seriously affected by the uncertainty created by the Brexit process, which has led to our inability to secure valuable flying contracts in Europe.
"Additionally, our situation mirrors wider difficulties in the regional airline industry which have been well documented.
"Against this background, it has become impossible for the airline's shareholders to continue their extensive programme of funding into the business, despite investment totalling over £40 million in the last six years.
"Our employees have worked extremely hard over the last few years and we would like to thank them for their dedication to the company, as well as all our loyal customers who have flown with us over the last six years."
The East Midlands-based airline, which has 376 staff, operates 17 planes flying to 25 European cities.
Affected passengers have been told to contact their travel agents or insurance and credit card companies.
British Airline Pilots' Association general secretary Brian Strutton said: "The collapse of Flybmi is devastating news for all employees.
"Regrettably Balpa had no warning or any information from the company at all."
"Our immediate steps will be to support FlyBMI pilots and explore with the directors and administrators whether their jobs can be saved."
The immediate cancellation of all flybmi flights, including three served by Aberdeen International, was announced tonight.
Last year the airline ran 29,000 flights, carrying 522,000 passengers.
Flying from Aberdeen, Derry, Bristol, the East Midlands, Stansted and Newcastle in the UK, its planes travelled to destinations in the Czech Republic, Denmark, France, Germany, Italy, Norway, Poland and Sweden.
Updated: A breaking news version of this article was illustrated with a generic aircraft image and update to the Flybmi logo later.
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