Hundreds of passengers have been left stranded across Europe following the collapse of the British regional airline Flybmi.
In a statement, the company said it had taken the decision due to increased fuel and carbon costs and to uncertainty arising from Britain's plans to leave the European Union on March 29.
"We sincerely regret that this course of action has become the only option open to us, but the challenges, particularly those created by Brexit, have proven to be insurmountable," the company said.
"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 and lack of confidence around bmi's ability to continue flying between destinations in Europe."
Aviation analyst Alex Macheras said Brexit is a "huge issue" for airlines.
"Ultimately, because of lack of clarity, airlines are still asking the UK government to provide exact answers as to how things will continue.'
However, Mr Macheras said Brexit is not the only cause of concern for airlines.
High fuel prices and over-capacity are also proving a challenge.
He said the market in Europe is fiercely competitive and he expects to see other weaker players collapse in the coming months.
The airline, based in the English East Midlands, operates 17 planes flying to 25 European cities. It employs 376 people in Britain, Germany, Sweden and Belgium.