Grounded flights meant many families were forced to abandon their holidays, while others scrambled for tickets with other airlines.

Passengers now face an anxious wait to hear whether they will get their money back, as experts warned that most travel insurance policies would not cover the failure of a tour operator.

About 2,000 passengers were affected at Manchester Airport, where seven outward and four inward XL flights were scheduled.

They included the Penman family, from Lanarkshire, Scotland, who were trying to salvage their two-week trip to Florida.

Tom Penman, 41, said they planned to take a train from Manchester to Glasgow and then fly to Orlando via Philadelphia in the US.

Mr Penman said: "It's shocking. We've saved up for two years and now the children are in tears. It's the last family holiday.

"We didn't go on holiday last year to save up for this one. Now we're scrambling for tickets and we are stuck.

"We have bought all the theme park tickets already and it was meant to be a holiday of a lifetime."

Passengers booked on flights from Manchester were given a three-page letter suggesting methods of getting reimbursed.

Brothers Joe and Tommy Kerwin, who hoped to travel to Skiathos, Greece, said their family had received "forms" instead of help.

"There was nobody there to explain what was going on," said Joe, 49, from Wirral, Merseyside. "There was no help at all. They must understand that people have a week or two booked off for a specific holiday.

"I feel gutted and angry but there's nobody to direct it at."

His brother Tommy, 52, from Liverpool, said: "It's disgusting. You save up all year round for your holiday.

"We came here relaxed and then this happens. We're stuck in an airport with no holiday."

There were similar scenes at Glasgow Airport, where passengers expecting to board the 7am XL flight to Tenerife were handed leaflets instead.

About 20 people queued outside a travel agent at the airport in the hope of securing the remaining seats on another flight to the Spanish island.

Jane Sangster, 74, from Perth, who said she waited for six hours without being offered a drink, described the situation as "ludicrous".

Morag Taylor, 57, said she was "gutted and angry" about the cancellation, having travelled from her home in St Albans, Hertfordshire, to visit her boyfriend's family in Scotland before starting her holiday.

"I asked what was the alternative for flights, and was told, the best thing is you can go home and book flights elsewhere."

"I was dumbfounded."

Julian and Marion Castle, who had had flown in from their home in Murcia, Spain, were among passengers left frustrated at London Gatwick. The couple were hoping to go on a two-week holiday in Florida with friends.

Mr Castle, 60, who booked the tickets in January and paid the balance in June, said they would have to pay £695 each to get seats on another flight.

Mrs Castle, 58, said: "We only rang up a few days ago to check everything was OK, and there wasn't an inkling there was any problem.

"Why they have to leave it to the early hours of the morning to announce they're going into liquidation is beyond me.

"We're very disappointed and very annoyed."

At Gatwick Airport, friends Danielle Silman and Hayley Kerr said they had been left in tears at hearing that XL had gone into administration.

The pair, from Portsmouth, had booked flights and accommodation through XL and were meant to be travelling to Egypt earlier yesterday.

They said they had queued all morning before they were able to change their holiday destination to Menorca.

Miss Silman, 26, said: "We've been calling the operator we booked the holiday with all morning but they're not answering the phone.

"We're now going to Spain. It's not the same but I'm relieved we're going somewhere."