German holiday airline Germania collapsed on Tuesday, cancelling all flights, after failing to secure emergency funding.
Germania, which carried around four million passengers each year, follows the failure of Air Berlin in 2017.
Germania’s management pointed to rising fuel prices, a stronger dollar, delays in new aircraft integration and maintenance costs.
"Unfortunately, we were ultimately unable to bring our financing efforts to cover a short-term liquidity need to a positive conclusion," said Chief Executive Karsten Balke.
Germania's 37 aircraft mainly flew German sun-seekers to more than 60 destinations in Europe, North Africa and the Middle East. It said all flights had been halted overnight after it filed for bankruptcy late on Monday.
Balke apologised to passengers who had booked directly with the airline, stating that alternative flights would not be made available.
Holidaymakers stranded overseas will be repatriated at special rates by the Lufthansa Group, TUIfly and Condor.
Any further rise in oil prices will hit smaller airlines that can't afford to increase their oil price hedging.
Germania said on January 19 that it had received a commitment for €15 million to secure its medium and long-term future but had delayed paying wages before closing down.
Germania flew to Ponta Delgada in the Azores and Funchal in Madeira. Routes in to Faro are to and from Erfurt, Münster, Osnabrück, Dresden and Nuremberg.
"Madeira is already in the field looking for alternatives to Germania", said the regional governor, Miguel Albuquerque, aware that Germaina provided 106,000 seats a year to the island.
