Economics

Wow Air's Demise Is Latest Threat to the Land of Booms and Busts

  • Icelandic krona plunges after collapse of discount carrier
  • Government says economy is strong enough to handle turmoil
Tourists bathe in the Blue Lagoon geothermal spa as steam rises in Grindavik, Iceland.Photographer: Arnaldur Halldorsson/Bloomberg
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Wow Air Hf helped turn tourism into Iceland’s biggest cash cow, fueling a boom that dragged the nation out of its financial collapse more than a decade ago.