Operations ceased on Tuesday 30 April and has Bluebird Nordic voluntarily surrendered its Air Operators Certificate to the Icelandic Civil Aviation Administration, the airline said in a statement.
The airline did not make any further comments about why it has ceased operations or whether there would be any impact on other companies in Avia Solutions Group.
Bluebird Nordic was established in 1999 and provided services from Iceland to Billund and onwards to Cologne.
Through cooperation with airlines including Aer Lingus, Emirates, UPS and others, Bluebird had links to locations all over the world.
In August 2021, Bluebird Nordic announced ambitious expansion plans of increasing its Boeing 737-800 fleet to 25 units by the end of this year.
In March last year, Bluebird Nordic took delivery of its fifth B737-800, adding to one B737-300 and six B737-400s.
During the same month, Bluebird Nordic announced it was planning to obtain an AOC in Slovakia to expand operations in Europe.