Business travellers with tickets booked on Zoom flights face travel chaos after the airline was forced into administration.

The company blamed the spiralling cost of aviation fuel and the economic slowdown for its plight, although analysts said it had been offering fares at unsustainable levels.

"The collapse of Zoom is a result of matters beyond our control," said a company statement.

"Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate.

"The price of oil resulted in our fuel bill jumping by nearly $50m in one year and we could not recover that from passengers who had already booked their flights."

Customers who have booked tickets using debit and credit cards are being advised to contact the card providers about possible refunds.

The budget airline has been in operation since 2001 and employs 260 staff in the UK.