Wow Airline has ceased operations and canceled its flights, leaving passengers stranded on both sides of the Atlantic.
It advised passengers to book new flights on other airlines, and said some may be eligible for compensation.
Wow Air CEO Skúli Mogensen told Icelandic state broadcaster RUV that negotiations to save the airline went on until the early morning in Iceland.
Mogensen said more than 1,000 passengers had been affected by the grounding of aircraft. He said he didn’t have an exact figure on the number of tickets that had been sold.
Wow Air said that it may pay compensation “in accordance with European regulation on Air Passenger Rights.” If the airline declares bankruptcy, passengers can make a claim with the administrator or liquidator.
Founded in 2011, Wow Air was known for cheap trans-Atlantic fares on routes via Iceland. It’s part of a group of Nordic airlines that drove ticket prices down thanks to no-frills service.
It’s the latest in a string of airlines to suffer problems as the aviation industry is buffeted by fierce competition and shifting business models.