UK's third-largest tour operator collapses

XL Leisure Group PLC blames volatile fuel prices, a sagging economy and its inability to secure more funding for their collapse.

Thousands of British travelers have been stranded by the collapse of the country's third-largest tour operator. XL Leisure Group PLC went into administration early Friday morning. The company blamed volatile fuel prices, a sagging economy and its inability to secure more funding.

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Transport Secretary Ruth Kelly said officials were working to arrange transportation home for travelers who are now abroad. At Gatwick Airport, people expecting to go on holidays arrived to find that XL's aircraft were all grounded.

XL's collapse comes a month after the demise of Zoom, a trans-Atlantic budget airline.