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Low-cost transtlantic carrier Zoom Airlines has ceased operations due to a huge increase operating costs over the last year.

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

"We are desperately sorry for the inconvenience and disappointment 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 late today we believed we had secured a new investment package to ensure future operations but the actions of creditors meant we could not continue flying. Having been unable to complete the investment package the directors of Zoom had no option but to instigate administration proceedings."

Zoom has said that Both British Airways and Virgin Atlantic have indicated that they will be offering special fares to customers whose travel plans have been affected by Zoom's suspension of flights.

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