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The soaring cost of fuel and a weakened economy claimed its first Canadian airline casualty yesterday after discount carrier Zoom Airlines suspended its operations, stranding hundreds of passengers in Canada and Britain.

The Ottawa-based company suddenly cancelled all of its flights after its creditors took action to get money owed to them.

A total of 213 passengers were stranded in Halifax, when ground crews refused to release Zoom's aircraft because their company hadn't been paid $2 million owed.

"Confusion is reigning supreme," said Linda Bishop, on her way home from Britain. "We just don't know how we're going to get there. ... You just have to pull out your credit card and hope you can pay at the end of the day."

In Scotland, the Civil Aviation Authority instructed the Glasgow airport authority to detain a Zoom Boeing 757 for non-payment of charges from Eurocontrol, the European organization for the Safety of Air Navigation, and NATS, the air traffic services provider.

Zoom said the economic downturn and the unprecedented rise in the price of aviation fuel had made it impossible to continue operations.