Flying solo: EasyJet are cutting flights due to fuel costs and the economic climate. 20 airlines have folded since the beginning of the year

Industry analysts are now suggesting that the reduced schedules could be a sign that the budget airline industry is grinding to a halt.

Douglas McNeill, a transport analyst at stockbrokers Blue Oar Securities said: 'Low fares and high growth are giving way to higher fares and lower growth.

'That is a sensible way to respond to the oil shock - but it sits uneasily with the low-cost airline model's traditional emphasis on stimulating demand through low prices.'

BMI British Midland, the UK's second largest airline, has said it expects fewer passengers as the economy crisis continues.

Meanwhile British Airways has announced cuts to its services and warned customers that they face 'inevitable price' rises.

More than 20 airlines have folded since the start of the year including three carriers that offered solely business class service from London to New York.

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There are fears that many more airlines will follow and that passengers will ultimately be left with less choice and higher fares when they book flights.

As part of EasyJets cutbacks, two of the routes - to Valencia and Almeria in Spain - are being moved from Stansted to Gatwick where it is believed the services will be more profitable.

None of the services are being axed but there will be a reduction in the frequency of flights.

An EasyJet spokesman said: 'In the current environment, flexibility is vital and Easyjet continues to review its schedule and may make further adjustments , both to eliminate unprofitable flying and to seize opportunities.'