Package holiday firm XL has filed for administration after experiencing financial difficulties, reports say.
Thousands of Britons could find themselves stranded abroad after the country's third largest package holiday firm went into administration.
The firm is Britain's third biggest tour operator and flies to 50 destinations, mainly in the Mediterranean and the Caribbean.
XL, which is based in Crawley, West Sussex, flies to 50 destinations, mainly in the Mediterranean.
XL is the latest travel firm to face financial difficulties as the industry struggles with sky-high fuel costs and an economic downturn.
All its flights have now been cancelled and its aircraft grounded.
Low-cost transatlantic airline Zoom collapsed last month.
The firm is the latest travel company to face financial difficulties, as the industry struggles with high fuel costs and an economic downturn.
A Civil Aviation Authority spokesman said the company currently continued to hold a licence to operate as a tour operator and commercial airline.
A statement on the XL group's website said: "The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding."
He said: "It has not been confirmed to us that XL have filed for administration."
Financial protection
Financial protection
The carrier had already cancelled its schedule of flights to the Caribbean.
The carrier had already cancelled its schedule of flights to the Caribbean.
If the firm were to collapse, package holidaymakers would be protected under the Atol scheme, a financial protection package.
If the firm were to collapse, package holidaymakers would be protected under the Atol scheme, a financial protection package.
The company has its headquarters in Crawley, West Sussex and flies mainly from bases at Gatwick, Manchester and Glasgow airports.
The company flies mainly from bases at Gatwick, Manchester and Glasgow airports.
BBC transport correspondent Tom Symonds said administrators might be able to help the company continue.
BBC transport correspondent Tom Symonds said administrators might be able to help the company continue.
"But many companies have gone into administration and not survived, it's a sign there is severe problems with the company's accounts," he said.
"But many companies have gone into administration and not survived, it's a sign there is severe problems with the company's accounts," he said.
"Other airlines who have had similar problems have had aircraft impounded."
"Other airlines who have had similar problems have had aircraft impounded."
If the news is true, it is a major, major thing for the industry Bob Atkinson, Travel Supermarket
If the news is true, it is a major, major thing for the industry Bob Atkinson, Travel Supermarket
Travel writer, Simon Calder said XL had 21 aircraft and flew to the Caribbean, Mediterranean, North Africa and North America, from airports across the UK.
Travel writer Simon Calder said XL had 21 aircraft and flew to the Caribbean, Mediterranean, North Africa and North America, from airports across the UK.
He said: "There are still going to be tens of thousands, maybe hundreds of thousands of people...who find that they are either stranded abroad, or find that they are booked to travel in the next days, weeks, months, and they simply won't be going anywhere, I'm afraid."
He said: "There are still going to be tens of thousands, maybe hundreds of thousands of people...who find that they are either stranded abroad, or find that they are booked to travel in the next days, weeks, months, and they simply won't be going anywhere, I'm afraid."
Bob Atkinson, of the price comparison website Travel Supermarket said XL's troubles would be blow for the travel trade.
Bob Atkinson, of the price comparison website Travel Supermarket said XL's troubles would be blow for the travel trade.
He said: "If the news is true, it is a major, major thing for the industry, the British travel industry. They are a very large operator and this will send serious shock waves through the industry.
He said: "They are a very large operator and this will send serious shock waves through the industry.
"And what it's going to do more than anything, it's going to highlight how precarious the airline industry is at the moment."
"And what it's going to do more than anything, it's going to highlight how precarious the airline industry is at the moment."
XL customer Marion Foster of Thame, Oxfordshire, has a flight booked to Rhodes next week and was contacted by customer services on Wednesday to ensure her tickets had arrived.
XL customer Marion Foster of Thame, Oxfordshire, has a flight booked to Rhodes next week and was contacted by customer services on Wednesday to ensure her tickets had arrived.
She said: "At the time I thought it was a nice customer service touch to receive such a phone call but now I don't know what to think.
She said: "At the time I thought it was a nice customer service touch to receive such a phone call but now I don't know what to think.
"As I only booked flights with them it looks like I will lose my money which seems somewhat unfair."
"As I only booked flights with them it looks like I will lose my money which seems somewhat unfair."
Are you affected by the issues in this story? Do you have a holiday booked with XL? Send us your comments and experiences using the form below.
Are you affected by the issues in this story? Do you have a holiday booked with XL? Send us your comments and experiences using the form below.
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