Italian budget airline Wind Jet has suspended all flights as it struggles with a financial crisis.

The Sicily-based operator is said to have left hundreds of thousands of passengers stranded as Italy’s holiday season started, according to weekend reports.

One cancelled flight due to take off to Tel Aviv from Rome’s Fiumicino airport meant 200 Isreali nationals had to sleep at the airport.

The BBC said the airline was close to losing its operating licence after a potential takeover by Alitalia collapsed.

As many as 300,000 people are estimated to have booked flights with Wind Jet over the coming weeks and Alitalia has offered to supply replacement flights on payment of a supplement.

A crisis centre has been set up by Italian aviation authorities to help Wind Jet customers.