Icelandair offers stranded WOW Air customers discounted tickets for flights home

29 March, 2019, 10:30 | Author: Erin Carter
  • KEFLAVIK ICELAND- APRIL 28 2018 Wow Air Airbus A320 at Iceland's international airport. WOW Air started to offer connecting flight between North America and Europe with a stop in Iceland

The company published a statement announcing the shutdown on its website this morning, being rather blunt with its customers and their flight status: "WOW AIR has ceased operation".

Most recently, Berlin-based leisure carrier Germania and United Kingdom regional airline Flybmi ceased operations last month. Passengers are concerned they will not get a refund on the abruptly cancelled flights.

"If you are affected, we advise you not to come to the airport but to check with the airline or the CAA's website for more information". The Icelandic airline grounded planes from New York, Boston, Detroit, Baltimore, Montreal and Toronto late Wednesday night, according to CBS News.

Analysts at investment firm Stifel note that WOW accounted for just 1 percent of air traffic capacity between the US and Europe, but that by offering low prices it put pressure on other airlines to cut fares. Passengers are being advised to check flights with other airlines Thursday.

In the travel alert released on Thursday, Wow Air said that passengers scheduled on flights to or from Iceland with Wow Air on March 28 can cancel their reservation for a full refund, or change their reservation to the next available Wow flight.

Founded in 2011, Wow Air was known for cheap trans-Atlantic fares on routes via Iceland.

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Your airline suddenly going bust is still an extreme scenario, says Quest. "But honestly, I feel like I can't really trust the longevity of any airline now".

In February, Berlin-based airline Germania cancelled its own flights and filed for bankruptcy, and other budget airlines such as British Flybe have narrowly escaped folding this year.

Icelandair said it would offer discounted flights for those stranded in Europe or North America. "You pay that. A lot of the income that these carriers make comes from selling these add-ons". With the rise of Iceland as a tourism destination it began advertising a "Stopover" service with short package tours for passengers overnighting in Iceland.

The privately-owned airline has undergone major restructuring after posting a pre-tax loss of nearly US$42 million for the first nine months of 2018. After four hours of delays, the flight was canceled. Other recent failures include Britain's Flybmi, the Nordic budget airline Primera Air and Cyprus' Cobalt.

"I will never forgive myself for not acting sooner", Mogensen wrote to employees on Thursday. "WOW was clearly an incredible airline and we were on the path to do awesome things again".



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