Update: WOW Air has ceased operations, and all flights have been canceled. Icelandair is offering discounted tickets to passengers stranded by WOW.
I’ll keep it short — things aren’t looking good for WOW Air. At all.
Iceland-based WOW Air has grown like crazy over the past couple of years, though not in a sustainable way. The airline is losing money, and has gotten to the point where they can no longer get financing. The airline has gotten rid of several of their planes and cut most of their US route network.
For the past several months WOW Air has been looking for outside investors:
- In November 2018 it looked like Icelandair would acquire WOW Air, though that deal ended up falling through
- After that, Indigo Partners (which has invested in quite a few airlines) signed an agreement in principle to invest in WOW Air; just a few days ago it was announced that this deal fell through
- WOW Air announced that they were back in discussions with Icelandair, and that the parties hoped to conclude negotiations by Monday, March 25, 2019 (tomorrow)
Well, there’s now an update on that front. Talks have ended between WOW Air and Icelandair. Per a statement from Icelandair:
Icelandair Group has decided that its possible involvement in WOW air’s operations, as announced on 20 March 2019, will not materialize. Therefore, all discussions between the parties have ended.
So yeah, at this point things are looking very, very, very bad for WOW Air. Unless a new investor comes along shortly and is willing to move quickly, their operations may be in trouble.