BRATISLAVA/VIENNA, Sept. 2 (Reuters) – Low-cost airline SkyEurope has filed for bankruptcy and has suspended all flights, the firm said on Tuesday, after struggling to restructure debt and cope with sinking revenues in the economic slump.

The small Slovakia-based carrier, which was launched in 2001 and served mainly continental Europe, had obtained a three-month creditor protection in Slovakia in June and was trying to restructure and pay its outstanding debt.

However, SkyEurope said a trustee appointed by a Slovak court had assessed that the carrier did not have the funds to carry on in light of reduced passenger bookings and flight revenue.

The economic slowdown has hit the airline hard and its financial woes compounded its problems, causing it to lose even more passengers because of concerns it become insolvent.

Passenger traffic in July declined by 37 percent year-on-year.

''The airline had tried to set up a bridge financing facility to remedy the liquidity shortfall but this facility was not funded at the last moment,'' the company said in a statement.

The Vienna stock exchange said it had suspended trading in SkyEurope shares with immediate effect until further notice.