Embattled Uruguayan carrier Pluna has suspended all flights for an indefinite period, after running into financial difficulties.
The airline states that its economic and financial situation "makes it impossible to ensure proper operation".
It says that it will halt services "indefinitely" and will try contacting all affected passengers to find the "best solution" to travel problems caused by the decision.
The carrier operated several Bombardier CRJ900s.
Pluna has been seeking new capital but its primary shareholder has opted to back out of the company. The airline's chief had warned in June that the company was battling competitive and political problems.