Icelandic budget carrier Wow Air has ceased operations and cancelled all flights, hours after suspending services while it attempted a last-ditch financial rescue.

The struggling carrier had been trying to arrange a debt-to-equity conversion with bondholders after talks with potential investment partners collapsed.

But the airline, which had called a temporary halt to flights on 28 March, states that it has now “ceased operation”.

“All Wow Air flights have been cancelled,” it adds, advising passengers to check availability for travel and possible rescue fares with other airlines.

Passengers could be entitled to compensation, it adds, and it also indicates that claims should be filed with any administrator “in case of a bankruptcy”.

Wow Air had commenced services in mid-2012, adopting a similar model to Icelandair by offering transatlantic service by way of transit through Reykjavik.

It had originally operated single-aisle aircraft but subsequently expanded to twin-aisle types before running into financial difficulties and sustaining heavy losses.

Wow Air is owned by investment vehicle Titan Fjarfestingafelag.

Source: Cirium Dashboard