Hundreds of passengers were left stranded last night as Zoom Airlines went bust.

Announcing the suspension of all flights yesterday, the airline posted a statement on its website advising passengers to contact their credit card company for refunds and seek alternative flights on other carriers.

British Airways however, said it had no economy seats available to Gatwick until Monday and last night remaining tickets were selling out quickly.

The grounding of all Zoom flights between Gatwick and North America means hundreds of tourists are now stranded in Bermuda.

Jean McCallum, 57, arrived on the Island yesterday afternoon on the last Zoom flight, which was en route to Fort Lauderdale. Mrs. McCallum, who is here for a week's holiday with husband Ian, 71, said passengers received no warning of the airline's impending closure nor any in-flight announcements.

"There was a strange atmosphere on the flight today," she said. "When we took off you just had the feeling that something wasn't quite right.

"As for the cabin crew, the service was fine but they were giggly, almost like it was the last day of school."

Mrs. McCallum said: "I just can't believe it. What are all these people going to do now? It's appalling to leave people stranded like this. It's terrible the way they have treated their passengers.

"The couple, from Kent, have now paid $5,500 for two return seats with British Airways on Thursday - they said the only remaining seats were in Club. Their original Zoom seats cost $1,300.

Another passenger Matthew Crake, 31, said he was angry at Zoom's failure to let him know his return flight was now cancelled. Mr. Crake, from Sheffield, said: "What do they expect us to do - swim? I saved up for months to come to Bermuda and now I don't even have a flight home. You'd think they could at least have mentioned something. This is unbelievable."

Chris and Ann Roberts arrived on last Thursday's Zoom flight and were due to fly home to Gloucestershire on September 4. Mr. Roberts, 67, said: "I'm a bit stunned to be honest. It's a very awkward thing to have happened and I'm lost for words at the moment."

In a statement on the company's website yesterday, Zoom, which started its Bermuda service in June 2007, blamed rising fuel prices for its demise.

The airline advises customers to contact their credit card companies for a refund, and for UK package holiday clients to claim compensation under the CAA Air Travel Organiser's Licence scheme.

The 'Low Fares, Full Service' airline said: "All flights scheduled to depart have been cancelled and Zoom's aircraft have been grounded. Both Zoom Airlines Inc and Zoom Airlines Ltd, the Canadian and UK airlines, will be filing for insolvency proceedings in their home countries today."

The budget airline's founders Hugh and John Boyle said: "We deeply regret the fact that we have been forced to cease all Zoom operations. It is a tragic day for our passengers and more than 600 staff."

They said the company's fuel bill had jumped nearly $50 million in one year and they had been unable to secure a new investment package. The Boyles said British Airways and Virgin Atlantic had offered special fares to assist displaced Zoom customers.

When asked about the lack of warning given to passengers, a Zoom spokesman told The Royal Gazette: "I don't think there can be any notice when it comes to something like this.

"We've contacted as many people as we possibly can. Today has been a very fast-moving situation and we are desperately sorry it has come to this. The people at Zoom have been trying everything to keep the airline going, but the actions of creditors around the world made it impossible to put aircraft in the air.

"There will be passengers bitterly disappointed, we understand that. There is a list of companies on our website we have been in touch with, with a view to identifying alternative flights."

British Airways' spokeswoman in Bermuda, Sallie Singleton, said: "We are talking to Zoom about ways in which we can help their customers. British Airways is most sympathetic to the plight of the passengers, but we are now going into the busy Labour Day weekend when all BA flights in both North America and Bermuda are full in economy. Seats do become available early next week and there are still a few Club and First Class seats available right away."

She added: "At the present time there are no plans to raise ticket prices."

Carl Paiva, chief executive of C Travel, Zoom's ticket agent in Bermuda, said customers who have booked seats with a representative or on its website would be refunded. He said C-Travel has had almost 2,000 bookings this year, adding: "I am surprised at what has happened today because Zoom has been very successful from Bermuda – our sales figures prove that."

A spokeswoman for Meyer-Franklin Travel said: "If you are currently travelling off-Island with Zoom, you will need to contact your travel agent or an alternative airline to rebook return travel to Bermuda on another airline."

Premier Ewart Brown said: "This comes as a shock to me and the Tourism and Transport team. Our people have launched an urgent effort to replace this valuable low-fare service from the UK."

Kim Swan, Opposition Leader and Shadow Minister for Tourism, described the budget airline's collapse as "a disappointing development for Bermuda".

Zoom customers should log onto: www.flyzoom.com or www.atol.org.uk for further information.

Have you been affect by the Zoom crisis?- if so email us at news@royalgazette.bm