Air Italy has entered liquidation after shareholders - Alisarda and Qatar Airways - refused to invest further resources in the company.
The airline lost €164 million in 2018, based on revenue of €283 million.
In a statement Air Italy said all flights would be operated, by alternate airlines, until February 25th.
Departures are expected to take off at the times and on the days previously scheduled.
The statement added all flights after this time would be fully refunded in an attempt to minimise disruption to passengers.
Air Italy operated a fleet of Boeing 737 Next Generation, Boeing 737 Max 8 and Airbus A330 aircraft.
It flew 13 planes in total.
The carrier offered flights to over 34 scheduled domestic, European and intercontinental destinations.
The second largest airline in Italy, it operated from a hub at Milan Malpensa Airport.
In a statement Qatar Airways said: “Despite our minority shareholder’s role, Qatar Airways has continuously provided all possible support to Air Italy right from the beginning, from releasing aircraft from our fleet and ordering new aircraft for Air Italy, to backing management choices and injecting capital and investment as required and permitted.
“Even with the changing competitive environment and the increasingly difficult market conditions severely impacting the air transport industry, Qatar Airways has continually reaffirmed its commitment, as a minority shareholder, to continue investing in the company to create value for Italy and the travelling public.”
The Middle Eastern carrier took a 49 per cent stake in Air Italy in September 2017.
Seemingly pointing the finger at Alisarda, the statement added: “For this reason, Qatar Airways was ready once again to play its part in supporting the growth of the airline, but this would only have been possible with the commitment of all shareholders.”