Thousands of passengers stranded as WOW Air collapses

Icelandic low-cost airline WOW Air has become the latest victim of the tough trading conditions in European aviation, ceasing its operations and stranding thousands of passengers.

The company’s website confirmed on Thursday that WOW Air has cancelled all flights, and advised passengers to book with other airlines.

WOW Air, which was based at Keflavik Airport, flew from two London airports - Gatwick and Stansted - and served a total of 20 year-round and six seasonal destinations in Europe and North America at the time of its collapse.

The airline told passengers with bookings to seek refunds for their fares if they paid by credit card or through a travel agency based in Europe, as under European Union rules those forms of booking offer some protection.

Passengers who booked by other means could be entitled to some form of compensation, WOW said, but warned that if the company declared bankruptcy, they would need to file their claims with the appointed administrator or liquidator.

The company had faced a shaky few months over a tough winter of trading for airlines across Europe, with its failure on Thursday adding another name to the long list of collapses in the last three years.

So far in 2019, German carrier Germania and regional British airline Flybmi have ceased operations.

Azur Air Germany, Air Italy, Cobalt Air, Meridiana, Primera Air, Small Planet Airlines and SkyWork suffered similar fates in 2018, and in 2017 Air Berlin and UK holiday carrier Monarch went over the brink.

Other airlines have also been facing turbulence, with Flybe being rescued this year by a consortium involving Virgin Atlantic, and Norwegian being forced to seek fresh funding to ensure its ongoing viability.

Even low-fares giant Ryanair, which has often defied industry trends in terms of profitability, reported its first quarterly loss since 2014 in February.