WOW Air CEO Paints Bleak Picture of Airline’s Future in Bondholder Letter
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. Terms apply to the offers listed on this page. 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. [Update, 3/28/2019: WOW Air has ceased operations. Find our ongoing coverage of WOW Air’s collapse, and what affected passengers can do about it, here.]
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.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.