Aer Southeast is to refund its passengers.
The airline says, following a request from the Commission for Aviation Regulation not to sell tickets without a licence, it will return payments to customers.
Aer Southeast had planned a service from Waterford to London, Manchester and Birmingham in the UK.
It says its committed to operating the flights and will work with authorities to ensure it can go ahead with its plans.
Aer Southeast chief executive, Einar Adalsteinsson, said: "Aer Southeast remains fully committed to operating flights between Waterford, London-Luton, Manchester and Birmingham, and we will work closely with CAR in the coming weeks to ensure that the correct licensing system is put in place.
"Once we are in a position to recommence taking bookings, we will communicate with our customers immediately.
"I want to personally thank the very significant number of customers who booked with us on our opening day and those who supported us through our recent difficulties, particularly the management team at Waterford Airport.
"We are heartened by the positive response we have received from the people of the region and from further afield and despite the less-than-ideal position we have found ourselves in recently, we are fully confident that there is a lot of demand for our services and a lot of goodwill towards the Aer Southeast and Waterford Airport.
"It is now clear that we will not be able to launch our services on July 24 as originally planned but we look forward to welcoming our customers aboard our maiden flight later on this summer. Once again I thank all of you for your support and forbearance."
Waterford Airport is welcoming today's announcement.