Budget travel firm Kiss Flights became the latest British holiday company to collapse on Tuesday, leaving plans for tens of thousands of holidaymakers in tatters.
The company, which operated flights to Greece, Egypt, Turkey and the Canary Islands, folded after its owner Flight Options ceased trading, said regulator the Civil Aviation Authority (CAA).
About 13,000 British holidaymakers who are currently overseas with the company would be able to finish their holidays and then helped to return home by the CAA, added the regulator.
The failure hit the holiday plans of some 60,000 Britons who had forward bookings with the company. The CAA said the vast majority would receive refunds.
As the company had collapsed at peak holiday season, the regulator said it was "putting in place arrangements to allow people to travel out on their holidays for the next 24 hours, to minimise confusion and protect passengers".
The demise of Kiss Flights comes after more than 1,000 British holidaymakers were stranded in Spain after travel company Sun4u collapsed last week.
This followed the recent failure of tour operator Goldtrail Holidays, affecting 16,000 customers on holidays to Greece and Turkey.
Experts have blamed the economic downturn and the Icelandic volcano ash cloud which crippled European air travel earlier this year for the string of holiday firm failures.Reuse content