IAG’s short-haul division of its budget airline Level is filing for insolvency, the Austrian-based carrier has disclosed.

Branded as Level Europe, the division is operated by Anisec Luftfahrt.

It says it will enter insolvency on 18 June, with all flights having been grounded since March.

The business has ceased trading with “immediate effect”, it adds.

Level originated as a long-haul operation out of Spain, but IAG subsequently opted to extend the Level brand to short-haul services from Vienna.

The company also chose to establish another Level Europe short-haul base in Amsterdam last year.

“Level Europe is unfortunately not able to arrange alternative flights for passengers,” the company states.

The carrier was using a fleet of about half a dozen Airbus A321s and A320s, with services covering European, Mediterranean and north African destinations.

Level Europe has informed employees, suppliers and creditors that an administrator is being appointed and further details will be released by 24 June.