Hundreds of passengers have been left stranded after flights were cancelled following the financial collapse of a budget airline.

Two flights to Billund in Denmark - home to the original Legoland - were scrapped at Gatwick airport as well as three to the capital Copenhagen and one to the Swedish capital Stockholm.

Icelandic-owned and Denmark-based Sterling Airlines has warned that those who booked direct through its website will not be getting a refund.

Sterling also flew from Edinburgh to Copenhagen and Stockholm as well as East Midlands airport to Stockholm, Copenhagen and Oslo in Norway.

A Gatwick spokeswoman said: "There are about 500-700 passengers involved. A Sterling representative is here and is handing out leaflets explaining the situation."

Those who had booked by credit card are being told to contact their credit card company while those who booked via a tour operator or travel agency are instructed to contact the operator or agency.

Sterling is the latest in a line of carriers that have ceased operation in recent months. XL Airways, Zoom and transatlantic luxury airlines Eos, MAXjet and Silverjet have all folded.

An East Midlands spokeswoman said: "In the early part of the summer Sterling had operated three services a week to Stockholm and Copenhagen and two to Oslo.

"From late summer the number of flights reduced and the last was on Sunday. We were in discussion with Sterling about recommencing services next spring."

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