A second British tour operator has gone bust days after the collapse of XL Leisure sent the travel industry into turmoil, the aviation regulator confirmed.

The Civil Aviation Authority (CAA) said K&S Travel informed them it had ceased trading on Saturday night, leaving 150 passengers in Bodrum, Turkey, requiring alternative flights.

It comes after 85,000 overseas Britons were left stranded on Friday following the demise of XL - the UK's third largest tour operator.

K&S Travel, which also trades under the name Travel Turkey, is the latest casualty of worsening times for the travel industry.

The north London-based firm primarily organises package tours to Turkey through flights chartered through Onur Air.

The CAA said holidaymakers were covered by the Atol protection scheme, and that it was rechartering planes from Onur to ensure that disruption was kept to a minimum.

A spokesman for the regulator said: "We will be organising for those people affected to complete their holiday as planned and come back to the UK as planned."

But it will prove a further headache, coming at a time when the CAA is in the process of airlifting thousands of people affected by XL's collapse.

It will also mean that 460 people who have future holidays booked through K&S will see their travel plans dashed.

They will be entitled to a full refund through the Atol scheme, the CAA said.

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