Trading conditions in the UK aviation market was already very tough and its been quite surprising that the airlines have been quite resilient to it and there hasn't been a major failure, albeit a couple of very near misses.
The threat from terrorism in Egypt and Turkey; two strong tourism destinations (the former an important winter destination for UK airlines) and the migrant crisis also affecting Greece is forcing UK tourists to the west of Europe. Airlines are moving their capacity, however there's only a finite amount these resorts can take and now there's a shortage of accommodation. As such its become a race to the bottom and massively important yields are diminished because there's now overcapacity. The summer season is what keeps many airlines afloat.
The UK government also float an uncompetitive APD, hidden as a 'green tax' which tries to suppress demand.
The industry needed this result like a hole in the head. Undoubtedly this will cost jobs and a further suppression of terms and conditions.