Airline Blue Islands has suspended trading, with all future flights cancelled, the company has confirmed.
In a statement, the airline said passengers should not travel to airports unless they have made alternative travel arrangements.
The Channel Islands-based airline, which employed about 100 staff, operated flights to various locations in the British Isles, and also to Bruges and Paris.
Jersey’s Minister for Treasury and Resources, Elaine Millar, said the government was working with an alternative airline to ensure Jersey had “reliable and sustainable air links for the long-term”.