The tour operator Thomas Cook has ceased trading with immediate effect after failing in a final bid to secure a rescue package from creditors.
More than 150,000 British holidaymakers are currently abroad and will need to be repatriated as a result of the 178-year-old firm's collapse, the Civil Aviation Authority said.
The BusinessLive team will be bringing updates on the situation, including reactions and news, from our dedicated Thomas Cook blog.
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The CAA said in a statement: "All Thomas Cook bookings, including flights and holidays, have now been cancelled. There are currently more than 150,000 Thomas Cook customers abroad, almost twice the number that were repatriated following the failure of Monarch.
"We know that a company with such long-standing history ceasing trading will be very distressing for its customers and employees and our thoughts are with everyone affected by this news."
The group's four airlines will be grounded and its 21,000 employees in 16 countries, including 9,000 in the 海角视频, will be left unemployed.
The company also operated around 600 海角视频 high street stores.
Boris Johnson has pledged to help holidaymakers stranded by travel company Thomas Cook's closure, as he questioned whether bosses are not incentivised to prevent their business's demise.
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Mr Johnson told reporters on board the RAF Voyager travelling to New York for the United Nations General Assembly that his thoughts were with customers.
"It's a very difficult situation and obviously our thoughts are very much with the customers with Thomas Cook, the holiday makers, who may now face difficulties getting home."
Speaking before the collapse was announced in the early hours of Monday, the PM said "we will do our level best to get them (travellers) home".
"There will be plans ready to deal with that if it's necessary," he said.
"One way or the other the state will have to step in quite rightly to help stranded holidaymakers."
He said ways must be investigated so tour operators can protect themselves from bankruptcy, following the collapse of Thomas Cook as well as Monarch's demise in 2017.
Britain's largest peacetime repatriation
The 海角视频 Civil Aviation Authority (CAA) said it has launched Britain's largest peacetime repatriation to bring home stranded Thomas Cook passengers.
- All of the travel company's flights have been cancelled - that means the 105 aircraft it operates, according to its website, have been grounded.
- There are 600,000 Thomas Cook travellers who have been left stuck at 51 destinations in 17 countries
- More than 150,000 of those are Britons.
- The airlift is almost twice the size of the repatriation effort required when Monarch went bust in October 2017.
- In that instance, the CAA put on 567 flights which brought almost 84,000 passengers back to the 海角视频.
- The final cost of the Monarch operation to taxpayers was about £50 million. The Department for Transport would not put a firm figure on how much it would cost this time around but it is understood it could top £100 million.
- Dozens of charter planes have been brought in from as far afield as Malaysia to assist with the mass airlift.
- Only holidaymakers with return flights booked within the next two weeks, between Monday and Sunday October 6, will qualify for a free flight home, as close as possible to their original return date.
- On Monday September 30, one week into the repatriation process, the CAA will launch a service which will seek to process all refunds within 60 days of full information being received. Further details will be given at thomascook.caa.co.uk.
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"One is driven to reflect on whether the directors of these companies are properly incentivised to sort such matters out," he added.
The PM also sought to fend off criticism over the lack of a state bailout for Thomas Cook.
"It is perfectly true that a request was made to the government for a subvention of about £150 million," he said.
"Clearly that's a lot of taxpayers' money and sets up, as people will appreciate, a moral hazard in the case of future such commercial difficulties that companies face."
The Civil Aviation Authority (CAA) said the Government had asked it to launch a repatriation programme over the next two weeks, starting on Monday and running to Sunday 6 October, to bring Thomas Cook customers back to the 海角视频.
The CAA statement said: "Due to the unprecedented number of 海角视频 customers currently overseas who are affected by the situation, the Civil Aviation Authority has secured a fleet of aircraft from around the world to bring passengers back to the 海角视频 with return flights.
"Passengers in a small number of destinations may return on alternative commercial flights, rather than directly through the Civil Aviation Authority's flying programme. Details and advice for these passengers are available on the dedicated website.
"Due to the significant scale of the situation, some disruption is inevitable, but the Civil Aviation Authority will endeavour to get people home as close as possible to their planned dates. This will apply to both Atol protected passengers and those who are not protected.
"Customers currently overseas should not travel to the airport until their flight back to the 海角视频 has been confirmed on the dedicated website.
"Thomas Cook customers in the 海角视频 yet to travel should not go to the airport as all flights leaving the 海角视频 have been cancelled."
Richard Moriarty, chief executive of the CAA, said it had launched "what is effectively one of the 海角视频's largest airlines" in order to repatriate British holidaymakers.
He said: "News of Thomas Cook's collapse is deeply saddening for the company's employees and customers, and we appreciate that more than 150,000 people currently abroad will be anxious about how they will now return to the 海角视频.
"The government has asked us to support Thomas Cook customers on what is the 海角视频's largest ever peacetime repatriation.
"We have launched, at very short notice, what is effectively one of the 海角视频's largest airlines, involving a fleet of aircraft secured from around the world. The nature and scale of the operation means that unfortunately some disruption will be inevitable. We ask customers to bear with us as we work around the clock to bring them home.
"We urge anyone affected by this news to check our dedicated website, thomascook.caa.co.uk, for advice and information."
Travellers 'devasted'
Travellers have said they are "absolutely devastated" at the closure of Thomas Cook but have expressed support for the travel operator's staff.
The tourism giant announced early on Monday that it had ceased trading after failing to secure a last-ditch rescue deal, leaving an estimated 150,000 Britons abroad awaiting repatriation.
Nicole from Swansea, who did not wish to give her surname, told the PA news agency she was "absolutely devastated" at the closure of the firm she had booked with, which came before her "very first holiday".
"And now we have the stress of trying to fix this and sort it all out," she added.
"I am truly gutted, but also devastated for the people who are stranded on their holidays and for the employees who have lost their jobs with no warning, and this close to Christmas.
"It's such a shame."
Lucy Jessop from Hull has been holidaying in Mexico for two weeks and said she had been set to fly to Manchester with Thomas Cook on Tuesday.
She said she was "initially worried" after hearing about the company's closure but the Government had been "amazing" in organising an alternative flight.
Ms Jessop said: "It's the employees of Thomas Cook and all those due to go on holiday I feel for.
"We were the lucky ones, I suppose."
One of those considering herself unlucky was an 18-year-old English woman whose single mother worked for Thomas Cook for almost 20 years.
The teenager, who spoke on condition of anonymity, said her mother had "known her job was vulnerable for the past few days but only found out she is unemployed when the news came out that Thomas Cook is over".
She added that she was the eldest of three daughters, the youngest of whom is 10-years-old, and the now the only person in her home with a job.
"I have a part-time job with around 15 hours a week so the next few months will be a huge struggle for us.
"Especially since it's Christmas soon."
Danielle, who was due to fly from Manchester to Menorca at 6.40am, said she found out about the company's shuttering online.
"We heard our holiday was cancelled from Twitter and then the news 20 minutes before we left for the airport," she tweeted to PA.
"We only booked the holiday on the 19th August.
"We are absolutely gutted."
"We have worked exhaustively in the past few days to resolve the outstanding issues on an agreement to secure Thomas Cook's future for its employees, customers and suppliers," Mr Fankhauser said.
"Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable.
"It is a matter of profound regret to me and the rest of the board that we were not successful.
"I would like to apologise to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years."
"Despite huge uncertainty over recent weeks, our teams continued to put customers first, showing why Thomas Cook is one of the best-loved brands in travel," Mr Fankhauser added.
"Generations of customers entrusted their family holiday to Thomas Cook because our people kept our customers at the heart of the business and maintained our founder's spirit of innovation.
"This marks a deeply sad day for the company which pioneered package holidays and made travel possible for millions of people around the world."
Transport Secretary Grant Shapps announced the Government and CAA has hired dozens of charter planes to fly customers home free of charge.
In a statement, the Department for Transport (DfT) said all customers currently abroad with Thomas Cook who are booked to return to the 海角视频 over the next two weeks will be brought home as close as possible to their booked return date.
Thomas Cook package holiday customers will also see the cost of their accommodation covered by the Government, through the Air Travel Trust Fund or Atol scheme, the DfT said.
Mr Shapps said: "Thomas Cook's collapse is very sad news for staff and holidaymakers.
"The Government and 海角视频 CAA is working round the clock to help people.
"Our contingency planning has helped acquire planes from across the world - some from as far away as Malaysia - and we have put hundreds of people in call centres and at airports.
"But the task is enormous, the biggest peacetime repatriation in 海角视频 history. So there are bound to be problems and delays.
"Please try to be understanding with the staff who are trying to assist in what is likely to be a very difficult time for them as well."
Business Secretary Andrea Leadsom said she would write to the Insolvency Service to ask them to "fast-track" their investigation into the circumstances surrounding Thomas Cook going into liquidation.
The investigation will also consider the conduct of the directors, the Department for Transport said.
Thomas Cook - what happens next?
The worst fears about the future of Thomas Cook have been confirmed as the firm collapsed into compulsory liquidation. Here the PA news agency looks at some of the key questions for its customers.
How many people are affected?
The Civil Aviation Authority (CAA) said there are currently more than 150,000 British customers on Thomas Cook holidays abroad - nearly twice the number that were repatriated after the collapse of Monarch in 2017. An estimated million more have lost their future bookings.
What will happen to customers already on holiday?
The CAA said the Government has asked it to launch a repatriation programme over the next two weeks, starting on Monday and running to Sunday 6 October.
The Department for Transport (DfT) said all customers currently abroad with Thomas Cook who are booked to return to the 海角视频 over the next two weeks will be brought home as close as possible to their booked return date.
Thomas Cook package holiday customers will also see the cost of their accommodation covered by the Government, through the Air Travel Trust Fund or Atol scheme.
Customers currently overseas should not travel to the airport until their flight back to the 海角视频 has been confirmed on the dedicated website thomascook.caa.co.uk.
What about those who have bookings and are yet to travel?
All bookings have been cancelled and, according to the CAA, Thomas Cook customers in the 海角视频 who have yet to travel should not go to the airport as all flights leaving the 海角视频 have been grounded.
Who will pay for this?
When Monarch Airlines went bust in October 2017, the Government spent £60 million hiring planes to get passengers home. A figure has not been given but bringing back Thomas Cook passengers will likely cost more than this.
What is the Atol scheme?
Atol provides protection to holidaymakers when travel firms collapse.
What type of bookings are protected?
The scheme protects most trips booked as a package, such as flights and accommodation, or flights and car hire. It also applies to some flight-only bookings, particularly when the tickets are not received immediately.
What protection does it offer?
If a business collapses while you are on holiday, the scheme will make sure you can finish your holiday and return home.
Customers who have not yet left home will be given a refund or replacement holiday.
What can I do if my trip is not Atol protected?
Under normal circumstances, passengers who are not ATOL protected would be asked to find, and pay for, their own way home.
Holidaymakers can usually apply to their credit or debit card provider to be reimbursed. Not all travel insurance policies provide coverage when a firm collapses.
But in this case, the DfT said everyone on a Thomas Cook holiday with a return flight to the 海角视频 within the two weeks will be brought home free of charge, whether they are Atol protected or not and regardless of their nationality.
What will happen to Thomas Cook shops?
Thomas Cook has around 600 stores on 海角视频 high streets which are expected to close. Thomas Cook Group employs around 21,000 people in 16 countries.
What about the airlines?
All flights have been cancelled, according to the CAA. Those based in the 海角视频, Scandinavia and the Balearics carry the group's name, while their German sister company is named Condor.
Mrs Leadsom said: "This will be a hugely worrying time for employees of Thomas Cook, as well as their customers. Government will do all it can to support them.
"I will be setting up a cross-government taskforce to monitor local impacts, will write to insurance companies to ask them to process claims quickly, and stand ready to provide assistance and advice.
"I will also be writing to the Insolvency Service to ask them to prioritise and fast-track their investigation into the circumstances surrounding Thomas Cook going into liquidation."
Fosun Tourism Group, which noted it is a "minority investor with no board representation" in Thomas Cook, issued a statement after the travel operator's collapse.
"Fosun is disappointed that Thomas Cook Group has not been able to find a viable solution for its proposed recapitalisation with other affiliates, core lending banks, senior noteholders and additional involved parties.
"Fosun confirms that its position remained unchanged throughout the process, but unfortunately other factors have changed.
"We extend our deepest sympathy to all those affected by this outcome."
In a statement, the syndicate of Thomas Cook's lenders said: "Unfortunately, and notwithstanding the efforts of all stakeholders, the £1.1 billion funding requirement to adequately recapitalise Thomas Cook has ultimately proved too significant. The Lenders providing finance facilities to the Group have been extremely supportive stakeholders, including through two periods of financial distress and have stood behind Thomas Cook over the past twelve months, a period where the Group saw cash outflows of about £1 billion, maintaining that position over the crucial and busy summer holiday period.
"Obviously, the Lenders are deeply disappointed that it has not proved possible to rescue Thomas Cook. In partnership with other stakeholders, the Lenders worked tirelessly to examine all options within the timeframe required."
"This is a statement I hoped I would never have to make," Thomas Cook's chief executive Peter Fankhauser told reporters.
"Following a decision by the board late last night, the 海角视频 Government's official receiver was appointed in the early hours of this morning, the 23rd of September, to take control of Thomas Cook.
"Despite huge efforts over a number of months and further intense negotiations in recent days, we have not been able to secure a deal to save our business.
"I know that this outcome will be devastating to many people and will cause a lot of anxiety, stress and disruption."
Speaking on ITV's Good Morning Britain, Transport Secretary Grant Shapps said the process of repatriating all the British people stranded abroad was expected to cost in the region of £100 million.
When asked why the Government hadn't simply bailed Thomas Cook out, he replied: "The company were asking for up to £250 million, they needed about £900 million on top of that and they've got debts of £1.7 billion, so they idea of just spending tax payers's money on that just wasn't really a goer."
He added: "I think the problem of putting money into it - apart from the fact governments don't usually go around investing in travel companies - is that it may have just stretched things out for a couple of weeks and we could have been exactly where we started."
All Thomas Cook check-in desks at Gatwick Airport were closed on Monday morning.
Messages were displayed on screens saying the company had ceased trading and all flights were cancelled.
Staff were positioned near the counter to speak to any passengers who turned up.
Mark Tanzer, chief executive of Abta, the association of travel agents and tour operators, said: "Along with many others in the industry, I am extremely saddened by today's news about the demise of Thomas Cook.
"It is one of the 海角视频's most iconic travel companies and today thousands of staff are facing losing their jobs. For customers and other travel businesses working with the Group, this will be an extremely worrying time.
"Abta has developed detailed advice to support customers and Abta members about what to do next."
Mr Shapps continued: "The company had enormous debts of £1.7 billion. The world had changed in terms of the way people book holidays and all these things over a very long period of time had caught Thomas Cook out."
He advised those stranded to head to ThomasCook.caa.co.uk for further information, and urged passengers not to try and travel back early but to complete their holiday.
"I've asked the Civil Aviation Authority (CAA) to start to prepare aircraft to bring people home," he said.
He said the CAA had been asked to bring everyone home regardless of whether they were Atol (Air Travel Organiser's Licence) protected or not.
The Transport Secretary said about 45 aircraft had been brought together from around the world to bring holidaymakers home.
Shadow chancellor John McDonnell criticised the Government for failing to bail out Thomas Cook.
"The Government's intervention could have enabled us to just stabilise the situation, give a breathing space so that there could be proper consultation with the workforce in particular about how to go forward," he said.
Mr McDonnell told the BBC that it was the Conservatives' "ideological bias" against state intervention that prevented the Government acting.
He said: "To just stand to one side and watch this number of jobs go and so many holidaymakers have their holiday ruined, I just don't think that's wise government."
Lisa Godbeer and her family were due to fly out to Mexico for a trip of a lifetime to celebrate her 40th birthday.
She said they had paid more than £6,000 for the 10-day holiday to Cancun for her and her husband, her daughter and a friend.
Ms Godbeer, from Somerset, added: "I'm really angry and a bit shocked really.
"We has a joke yesterday saying imagine we get there and it (Thomas Cook) had shut down.
"If it was a couple of hundred quid I wouldn't care but it's a bloody lot of money."