Between 2012 and 2019, Wow Air offered a new vision for flying between North America, Europe, and Iceland. The airline, founded by Icelandic entrepreneur Skúli Mogensen, built its brand around bold expansion and low fares, aiming to position Iceland as a major international transit point.
A new era for Icelandic aviation
Building on Reykjavík’s role as a gateway between continents, Wow Air followed in the footsteps of earlier airlines such as Loftleiðir, once known as the “Hippie Express” for its low-cost transatlantic journeys. Iceland’s unique geography, at the crossroads of the Atlantic, has long attracted airlines and travellers seeking efficient routes between Europe and North America. The state carrier Icelandair still promotes stopovers in Iceland, a scheme dating to the 1960s.
Wow Air launched its first flight from Keflavík to Paris in May 2012. Soon after, it acquired the operations of Iceland Express, another budget carrier, and rapidly increased its route network. By 2014, it had carried over one million passengers. Expansion into North America began in 2015, and by the following year, Wow Air was flying as far as Los Angeles and San Francisco with leased Airbus A330-300 aircraft.
At its peak, the airline served over 1.6 million annual passengers and connected Iceland with major cities in Europe, North America, and even India as part of a foray into Asian markets. Its fleet was dominated by Airbus A320s for short European hops and larger A321s for transatlantic travel.
Challenges and collapse
However, ambitious growth brought financial strain. Despite growing revenues, Wow Air posted losses from 2017 onward. New competitors and changing industry economics added to the difficulty. Merge talks with Icelandair and investment offers from international firms ultimately fell through as the airline returned aircraft and reduced staff.
By March 2019, mounting debt forced Wow Air to halt all operations, stranding passengers and causing a ripple effect through Iceland’s economy. The airline previously accounted for over a quarter of visitors to the country; its sudden closure contributed to a 16 percent dip in tourism and increased unemployment. Hotel and holiday home construction declined with fewer travellers passing through.
The airline’s brand and some assets were purchased by USAerospace Associates, a holding company in the United States, but announcements about relaunching Wow Air service have not materialised into actual flights. Media outlets have been unable to verify if plans are progressing.
A changing landscape
After Wow Air’s collapse, its former executives attempted a comeback with a new airline, PLAY, which started service in 2021 but also later ceased operations. For many, Wow Air’s story remains a cautionary tale of rapid growth, big ambitions, and the volatility of modern air travel.
Sources
- Wikipedia
- Wikipedia (Icelandic) in Icelandic
