German Sky Airlines is suspending its flights with immediate effect, citing poor economic conditions, although it plans to resume services after the winter period.
The carrier is returning two Boeing 737-800s to their lessors.
German Sky Airlines says it will halt services from 1 December and has informed the German civil aviation authority and tour operators about its decision.
It attributes the move to a "significant deterioration" in the economic conditions for German carriers, notably following the introduction of a departure tax.
The Dusseldorf-based airline has been unable to pass on the costs in the form of higher fares, it says, because of the competitive environment.
German Sky Airlines emerged as a carrier in 2010. It is affiliated with the Turkish travel company Kayi Group which is also linked to Antalya-based Sky Airlines.