The UK's fifth-biggest airline company, Monarch Airlines, has ceased trading as it goes into administration. All of its future bookings have also been cancelled, the Civil Aviation Authority (CAA) has said.

The company had been in talks with the aviation authority about renewing its licence to sell package holidays and it had until midnight on Sunday to reach an agreement with the CAA but failed to do so, the BBC reported.

More from IBTimes UK

The CAA said that around 110, 000 passengers of the airlines who are currently stranded in overseas have been told to not go to the airport and a programme has been launched to bring them back.

The statutory corporation which oversees and regulates all aspects of civil aviation in the UK has said it is working with the government to secure a fleet of more than 30 aircraft to bring the passengers back to the country.

According to a BBC report, Monarch carried 6.3 million passengers last year to 40 destinations.

"We know that Monarch's decision to stop trading will be very distressing for all of its customers and employees," Andrew Haines, Chief Executive of the CAA, was quoted as saying by Telegraph.

"This is the biggest UK airline ever to cease trading, so the Government has asked the CAA to support Monarch customers currently abroad to get back to the UK at the end of their holiday at no extra cost to them."

The company was founded in 1968 and employs about 2,500 people.