Swedish travel company Flyhome filed for bankruptcy Wednesday.

• Iraq Airways ends plans for Sweden flights
• Kuwaiti authority tried to seize Swedish airplane

More than 1,000 passengers -- 450 in Lebanon and 650 in Iraq – may be stranded after the Swedish travel organizer Flyhome went bankrupt on Wednesday.

The Gothenburg-company blamed the situation on an ongoing dispute with the airline Primera Air, with the company forced to pay compensation to customers when Primera Air didn't have the correct permission to fly into Iraqi airspace, newspaper Göteborgs-Posten wrote. The airline, on the other hand, wrote on its website that “Flyhome has not paid according to contract”.

Travelers stranded will not get any help from Flyhome, according to attorney-at-law and trustee in bankruptcy Lennart Landrén. Passengers are urged to contact the Swedish Consumer Agency or the Embassy for advise and help.

Flyhome said on its web: Travelers from Beirut to Gothenburg July 28 can fly home as usual and will be 10p.m. at Beirut airport on Wednesday evening. Lennart Landrén was however not able to confirm that the information was correct.

In May Iraqi Airways abandoned plans for services to Britain and Sweden because of the "escalation" of a legal battle with Kuwait.