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Iceland’s Wow Air Shuts Down After Failing to Raise New Cash

  • Passengers in Iceland advised to check for ‘rescue fares’
  • Founder Mogensen: ‘I will never be able to forgive myself’

Photographer: Joel Saget/AFP via Getty Images

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Wow Air Hf has gone out of business, stranding thousands of passengers and creating potentially huge risks for Iceland’s tiny economy and its growing reliance on tourism.

The discount carrier is the eighth European airline to have failed since the summer as margins are pinched by fluctuating fuel costs and over-capacity that’s sparked a continent-wide fare war.