The Silverjet airline has suspended all flights after failing to secure essential funding.
Shares in the business airline were suspended earlier this month after failing to secure £5 million in vital funds.
The struggling firm previously flew from Luton Airport to destinations such as New York and Dubai.
Silverjet is the latest airline to be hit by the soaring fuel prices. Eos and Maxjet have also both gone out of business recently.
A statement posted on the airline's website from chief executive officer, Lawrence Hunt, thanked customers for their belief in the firm.
"Your belief in us was shared by our investors - but regrettably, due to unforeseen circumstances, they were unable to unlock the finance that we needed," Mr Hunt declared.
"As a result, we are very sad to announce that from May 30th 2008, we will cease operations and we are no longer able to honour flight reservations.
"We extend our sincerest apologies to those of you who have travel plans with Silverjet in the future and at present."
Silverjet started operating flights in January 2007.
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