This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
Time is not on WOW Air‘s side. While Icelandair announced its intentions to acquire the struggling carrier a few weeks ago, that’s not looking as certain right now. In a rare move, CEO Skuli Mogensen penned a letter to bondholders that paints a pretty rough picture. He not only blames “significant bad publicity about the financial health of WOW Air” for creating a situation where its Q4 financials are “materially worse than originally anticipated,” but lays out his view of a domino effect leading to today.
The series of unfortunate events includes, bizarrely, Primera Air’s collapse, which Mogensen claims “further worsened an already challenged situation.” As the walls have closed in around the carrier, customers are booking less and creditors are hounding WOW Air for payments — not exactly ideal when you’re having cash flow problems. New York’s JFK, Dallas, St. Louis, Cleveland, Cincinnati and Tel Aviv routes have been casualties of WOW Air’s contraction so far.
Mogensen goes on to say that WOW Air has been “working diligently to seek additional funding.” He has personally sunk another 5.5 million euro into the bond, noting that the company is “taking every step possible to ensure the continuous operation of WOW Air.”
If you have a booking, now would be a good time to check which credit card you used to purchase the flight and familiarize yourself with the card’s trip cancellation policies and other travel benefits. We’ve reached out to WOW Air for comment and will update if a response is provided.
Know before you go.
News and deals straight to your inbox every day.
Earn unlimited 10x miles on hotel stays booked and paid through hotels.com/venture. Pair that with the Hotels.com Rewards program and you'll essentially be getting 20% off of hotel bookings! With the 50,000 mile sign-up bonus you can get up to $700 in value based on TPG's most recent valuations and you'll have the flexibility to transfer those miles to participating airline partners or redeem those miles on any purchase for airfare, hotel stays, car rentals and more.
- Enjoy a one-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel
- Earn 2X miles on every purchase, every day. Plus earn 10X miles on thousands of hotels, through January 2020; learn more at hotels.com/venture
- Named ‘The Best Travel Card' by CNBC, 2018
- Receive up to $100 application fee credit for Global Entry or TSA Pre✓®
- Fly any airline, stay at any hotel, anytime; no blackout dates. Plus transfer your miles to over 12 leading travel loyalty programs
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- No foreign transaction fees
- $0 intro annual fee for the first year; $95 after that