The Vienna-based airline, the European arm of Level, expects to appoint an administrator in the coming days.
Level’s European short-haul flights have been grounded since March owing to the "unprecedented" impact of the coronavirus crisis.
"Level Europe, the Austrian based low-cost carrier previously named ANISEC, intends to file for insolvency," said the carrier in a statement.
"The airline, whose short-haul flights have been grounded since March 2020, has ceased trading with immediate effect.
"Once insolvency proceedings are filed, an Austrian court will appoint an administrator."
Customers with flights booked through channels other than the Level Europe website are advised to contact airline partners directly to confirm whether their travel plans have been affected, and the options available to them.
Passengers who booked via the Level Europe website will be required to contact the court’s appointed administrator to check their options.
Level’s long-haul operation will continue, it is understood. TTG has approached Level for further information.
Level Europe operated out of Luton, and previously Gatwick. Its European route network spanned airports in Austria, Cyprus, France, Germany, Italy, the Netherlands, Portugal and Spain.
