Zoom Airlines today announced that it has ceased operations – with bosses blaming the huge rise in fuel costs, according to a statement placed on the company website this afternoon.

All flights scheduled to depart have been cancelled and Zoom’s aircraft have been grounded, the statement said. According to Bermuda International Airport's website, tonight's 10.35 p.m. flight to Gatwick has also been cancelled.

Both Zoom Airlines Inc and Zoom Airlines Ltd, the Canadian and UK airlines, will be filing for insolvency proceedings in their home countries today.

The statement said: “Zoom Airlines sincerely regrets to advise its customers that it has ceased operations with effect from 18:00 UTC on Thursday 28 August.

“For customers who have future travel plans involving a Zoom flight for which reservations and payment have been made, you should refer to your credit or debit card company to apply for a refund.

“We have set out details of other airlines who operate the same or similar routes to those flown with Zoom in the hope that this may assist you in making alternative travel plans to replace the flights that you had booked with Zoom.

“If your travel arrangements have been made as part of a holiday package originating in the UK and booked through a holiday company, you may be able to make a claim under the CAA’s Air Travel Organiser's Licence scheme. For information on this, please consult the CAA ATOL website at www.atol.org.uk.”

Hugh and John Boyle, the founders of Zoom, said today: “We deeply regret the fact that we have been forced to cease all Zoom operations. It is a tragic day for our passengers and more than 600 staff.

“We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights.

“We have done everything we can to support the airline and left no stone unturned to secure a re-financing package that would have kept our aircraft flying. Even as late as yesterday we had secured a new investment package but the actions of creditors meant we could not continue flying.

“The collapse of Zoom is a result of matter beyond our control. Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate. The price of oil resulted in our fuel bill jumping by nearly $50 million in one year and we could not recover that from passengers who had already booked their flights.

“We would like to thank the many thousands of passengers who chose to travel with Zoom during the last seven years and efforts of the airline's staff.

“We have been advised that British Airways and Virgin Atlantic are graciously offering special fares to assist Zoom customers that have been displaced by the suspension of our services.”

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