Iceland’s airline boom loses its Wow factor
For an airline operating with wafer-thin margins, even a sustained run of high fuel prices can be an existential threat – but Wow probably wasn’t killed by adverse external circumstances
Wow Air,the Icelandic low-cost carrier, wanted to disrupt the lucrative business of transatlantic flights. Its collapse not only puts the whole business model in question, but also threatens Iceland's tourist-led economic recovery.
On Thursday, Wow Air announced it would cease operations and cancel all flights after failing to attract funding to keep covering its losses. Founder Skuli Mogensen, a former tech entrepreneur, had tried everything – including a sale to flag-carrier Icelandair, which ...
