Dublin-based charter airline Futura Gael has suspended all flights on its European holiday routes due to rising costs.
A number of Irish tour operators said they were working to avoid Irish holidaymakers being stranded.
Panorama, Sunworld, Direct Holidays, Budget Travel and Falcon Holidays said they were trying to find alternative aircraft to accommodate passengers.
Futura Gael is a subsidiary of Futura International Airways group based in Mallorca and said it had been looking for an investor to secure operations.
It employs 90 people in Dublin and a spokesman said all flight staff - about 70 workers - were being temporarily laid off.
"The difficulties faced by Futura Gael are similar to many other companies in the sector and are mainly resulting from the speculative and exaggerated increase in the price of oil in recent months, this issue have placed the Future Group in a very difficult situation from a financial point of view," a company statement said.
"The situation facing the Futura Group is absolutely exceptional, because the last three years had been the best in its history.
"Just two months ago Futura hired a group of experts in restructuring companies to help it to establish a viability plan that would include the entry of an outside investor.
"So far it has not been possible to obtain an investor and to this end a decision had to be made."
It is not known how many passengers are affected. Falcon Holidays said Futura Gael was due to operate three of its flights to mainland Spain today from Dublin, Cork and Shannon.
Another was due into Dublin this evening and the company said all flights will be operated by an alternative carrier.
"Falcon Holidays has ten flights in operation with Futura for the remainder of Summer 2008," Damien Mooney, Falcon Holidays' Managing Director said.
"We have made alternative arrangement for all those flying today and due to travel tomorrow. "We will be in touch with customers directly and through travel agents to inform them of arrangements for the remainder of the season.
"We appreciate the patience of our customers at this time as we try to re-arrange flights at short notice."
Panorama, Sunworld and Direct Holidays - all operated by Thomas Cook - were due to fly with Futura Gael to a range of destinations including the Canary Islands and Egypt this weekend.
A spokesman said the company was confident alternative aircraft could be found.
"Panorama, Sunworld and Direct Holidays had planned to operate flights with Futura this weekend to a number of destinations and is currently sourcing alternative aircraft to ensure that customers currently on holiday return as scheduled and that those customers due to fly over the coming weeks get the holiday they had planned," he said.
Budget Travel said its first flight with Futura International was on Thursday, from Cork to Palma, and said it was also trying to find alternative planes.
PA