HUNDREDS of Manchester holidaymakers could be stranded and left out of pocket after the collapse of a trans-Atlantic airline.

It emerged late last night that Zoom Airlines - who fly to Canada from Manchester - had gone bust.

It is understood all the firm's flights have now been cancelled and that staff have been asked to leave their Toronto offices.

Zoom is NOT an Air Travel Organisers' Licensing (ATOL)-bonded airline, which means that refunds for passengers who were expecting to fly to Toronto today, or on any other forthcoming flights, are not guaranteed.

Holidaymakers expecting to fly back from Canada are also not guaranteed refunds or free transfers back to Manchester.

Zoom was advising passengers to contact their debit or credit card company about a refund.

Meanwhile, customers who have booked flights as part of a package deal with a holiday company can make a claim under the Civil Aviation Authority's ATOL scheme.

Hugh and John Boyle, the founders of Zoom, said in a statement on their website : "We deeply regret that we have been forced to cease all Zoom operations.

"It is a tragic day for our passengers and more than 600 staff.

"We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights. We have done everything we can to support the airline and left no stone unturned to secure a re-financing package that would have kept our aircraft flying.

"Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate."

Zoom check-in and flight staff were not expected to be at Manchester Airport today.

But the statement on Zoom's website said British Airways and Virgin Atlantic were offering special fares to passengers affected.