Albanian carrier Belle Air has ceased operations "due to the general economic situation, the decline of the purchasing power, recession in the markets it operates as well as from the freezing for over 18 days of its bank accounts".
The airline, which served airports including London's Stansted from its base at Tirana International, said that it would now "start a process of restructuring aiming to return with lower prices and quality service in the Albanian market".
It added that it would invite Albanian and foreign investors "to be part of the revival of this success story of an Albanian born business".
The news leaves just British Airways offering direct, non-stop flights between London and Tirana, with a three times-weekly service operating from London Gatwick.
Belle Air said that customers holding a valid ticket would be able to purchase "a new ticket at a special adjusted price" from Italian carrier Blue Express.