IAG carrier Level Europe has ceased trading with immediate effect and is set to file for insolvency.
The Vienna-based airline, the European arm of Level, expects to appoint an administrator in the coming days.
Level’s European short-haul flights have been grounded since March owing to the "unprecedented" impact of the coronavirus crisis.
"Level Europe, the Austrian based low-cost carrier previously named ANISEC, intends to file for insolvency," said the carrier in a statement.
"The airline, whose short-haul flights have been grounded since March 2020, has ceased trading with immediate effect.
"Once insolvency proceedings are filed, an Austrian court will appoint an administrator."