These are not great economic times, and they're taking a toll on the travel industry. Icelandic-owned and Denmark-based Nordic budget airline Sterling announced today that it will file for bankruptcy, halting all of its aircraft. The slowdown of the travel market and rising oil prices put financial strains on the airline a year ago, but now with the fall of the Icelandic economy, and hence the funds of the airline's owner, Sterling had no choice but to call it quits.

And although things are obviously bad for the airline, things aren't any better for its passengers: the halting of flights has left thousands of them stranded at airports across Europe. Sterling announced that tickets purchased online at the Sterling website would not be refunded, nor would return flights be honored. Coming to the rescue, rival airline Scandinavian Airlines announced that it would offer Sterling passengers and crew members seats on its flights to Copenhagen, depending on availability. But that will only help a small handful; all in all, an estimated 40,000 customers are said to be affected by the bankruptcy.

Filed under: Business, Europe, Denmark, Iceland, Airlines