The Hungarian national airline Malev has grounded its planes after running out of cash.
This includes one craft at Dublin.
The company has been in operation for 66 years and has 2,600 workers.
The announcement follows a European Commission ruling early this month that forced the carrier to repay State aid worth hundreds of millions of dollars.
The airline accounts for 40% of annual turnover at Budapest International Airport.
A Malev flight from Dublin to Budapest was among those cancelled this morning.
Servisair are the baggage handlers for Malev.
It says it understands that the Hungarian government will be refunding all of the passengers and that they have got their luggage back and made alternative travel arrangements.
