Scottish operator David Urquhart Sky Travel has gone into administration and ceased trading.
The company, based in East Kilbride, Glasgow, was both an Atol holder as well as being an Abta member.
The failure comes two months after sister firm David Urquhart Travel decided to wind up its coach tour business due to the impact of the coronavirus pandemic.
In a statement, the company said: “With the impact of Covid-19 resulting in worldwide travel bans, David Urquhart Sky Travel has seen an almost complete cessation in new bookings and suffered cancellations across all destinations. This has unfortunately resulted in the company being placed into administration.”
Donald McNaught and Matthew Henderson of Johnston Carmichael have been appointed as joint administrators of the company.
David Urquhart Sky Travel operated several websites selling beach destinations, cruises, city breaks, flights, holidays and the Channel island of Jersey.
The CAA said it was “currently collating information” from the company and would issue an update next week, while claim forms for affected consumers will be published “shortly”.
David Urquhart Sky Travel was licensed by the CAA to carry up to 6,250 passengers per year through its Atol.
Abta said in a statement: “The majority of holidays sold by David Urquhart Sky Travel Limited were flight-inclusive packages and these were protected by the CAA’s Atol scheme.
“David Urquhart Sky Travel also sold a small number of accommodation only bookings which are protected by financial failure insurance and also sold holidays as an agent for other tour operators.”