Credit Crunch forced a decision to place XL Leisure Group into administration has also left thousands of staff facing the axe.

The firm went into administration at 3am on Friday after failing to secure a multi-million pound rescue package. In a statement it blamed problems caused by "volatile fuel prices and the economic downturn".

Chairman Phil Wyatt said he was "totally devastated" by the failure which has grounded XL's 21 planes. The company flies to about 50 destinations.
There are 67,000 stranded who booked directly with XL, and another 23,000 who booked via other companies.

The Civil Aviation Authority(CAA) also said the firm had 200,000 advance bookings.

Up to 85,000 Britons are thought to be on holidays run by the company, which flies to 50 destinations, mainly in the Mediterranean.

A further 200,000 who have made bookings with XL, which trades under names such as Kosmar, Travel City Direct and the Really Great Holiday Company, are set to have their holidays ruined, after all its flights were grounded.

Holidaymakers preparing to come home who booked their trips through XL's tour operators, which also include Freedom Flights, Aspire Holidays and Medlife Hotel, are protected under the ATOL tour operators' licensing scheme, and will have return flights found for them and paid for.

However those who booked flights directly through XL Airways, the company's own airline, could have to organise and pay for making their own way home.
People preparing to leave for holidays with the group, which flew more than 2.3m Britons last year, have been warned not to travel to airports. However the news came too late for many passengers, who were informed by a leaflet they were handed as they arrived.

A spokesman for ATOL said XL's collapse was "a huge failure" and promised the group would be working with other operators such as Thomson First Choice, to bring any stranded passengers home.