SkyEurope, the Slovakian based budget airline, has become the latest casualty of the global recession following the cancellation of its flights from Luton and Manchester with immediate effect.

Fellow low-cost air carriers have been quick to offer rescue packages, with Ryanair, Easyjet, Flyniki and Austrian Airlines all vying for the thousands of passengers who found themselves suddenly stranded.

SkyEurope has not guaranteed ticket-holders refunds.

The latest collapse comes on the heels of the airline industry’s billion-pound loss of revenue in what is traditionally the busiest time of the year. Falling fares coupled with rising fuel costs have seen several operators reduce or terminate their services. Suggestions of an impending economic recovery have sent jet fuel prices soaring to over $80 a barrel.

In June, the Bratislava-based airline declared insolvency which was quickly followed by bankruptcy as airports in Vienna and Prague decided to halt all SkyEurope flights due to the company’s failure to pay its debts.

IATA, the International Air Transport Association, figures show the industry had seen losses of over £4 billion in the first half of 2009. British Airways suffered a loss of over £400 million in the year ending April 1st, a record deficit for the airline.

While SkyEurope has advised that it may not be possible to provide refunds, passengers who have booked via credit card and those with package deals should be protected under the Civil Aviation Authority’s legal system. Passengers who booked directly with the airline may not be so lucky, which in turn has led to calls a regulatory system overhaul on refunds.