Wow Air Ceases Operations, Leaves Passengers Stranded

REYKJAVIK - After failing to secure emergency funding Iceland’s Wow Air has ceased operations and grounded all flights. Thousands of passengers across the airline’s former network have been left stranded.

The budget carrier, which flew between the US and Europe via Reykjavik, advised passengers to find available flights with alternative companies. Wow employs 1,100 people worldwide.

A message on the company’s website reads: “Wow Air has ceased operation. All Wow Air flights have been cancelled. Passengers are advised to check available flights with other airlines.

“Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances. Information on those airlines will be published, when it becomes available.”

The airline said customers who paid for their tickets with a credit card should contact the credit card company to check whether they are entitled to a refund. Those who bought a package holiday from a travel agent within the European Economic Area are protected by the package travel directive, a Wow spokesperson said.

Although passengers may be entitled to compensation from Wow Air, in case of a bankruptcy, claims should be filed to the administrator or liquidator, the spokesperson added.

WOW Air was founded in 2011, operating its inaugural flight in 2012. The airline was owned by entrepreneur Skúli Mogensen via Titan, an investment company wholly owned by Mogensen.

Wow’s first flights were to London, Amsterdam and Berlin, adding North American routes from 2015. In the US Wow served Los Angeles, New York, Boston and Washington, DC. The company operated a fleet of 11 Airbus single-aisle aircraft and all US-Europe flights travelled via the company’s base at Reykjavik’s Keflavik airport (airport code KEF).

In November 2018 Wow agreed a sale to Icelandair Group, the holding company of rival carrier Icelandair, subject to shareholder approval. The combined airline would have enjoyed a share of around 4% of the transatlantic market. That deal later collapsed.

A second sale agreement was fashioned with Indigo Partners, a stakeholder in several other low-cost carriers. In anticipation of the sale’s completion Wow laid-off some 360 staff, returned five leased aircraft and cancelled several of its routes. That deal also collapsed.

Unable to agree a sale Wow announced on March 26th that it was struggling to secure the company's future. The airline initially postponed flight scheduled for March 28th before announcing that all flights were cancelled and it was ceasing all operations.

According to the Iceland Transport Authority special rescue fares will be offered to stranded passengers through Icelandair, EasyJet, Norwegian and Wizz Air.

A spokesperson for Wow declined further comment.