Irish budget airline JetGreen Airways ceased trading on Wednesday one week after its first flight as it became the latest victim of cut-throat competition in Europe's no-frills airline market.

The Dublin-based carrier, which began daily flights to the Spanish leisure destinations of Malaga and Alicante on May 4, said the decision had been "a matter of deep regret" and apologized to passengers who had been left stranded.

"We would like to thank all the people who have booked with us and apologize for the undoubted inconvenience this causes to their travel plans," JetGreen said in a statement.