Iceland’s Wow Air Shuts Down After Failing to Raise New Cash

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Wow Air Hf has gone out of business, stranding thousands of passengers and creating potentially huge risks for Iceland’s tiny economy and its growing reliance on tourism, Bloomberg News reported. The discount carrier is the eighth European airline to have failed since the summer as margins are pinched by fluctuating fuel costs and over-capacity that’s sparked a continent-wide fare war. Wow’s demise should bring short-term relief to local rival Icelandair Hf. Ryanair Holdings Plc, EasyJet Plc and Wizz Air Holdings Plc -- Europe’s three biggest discount airlines -- also fly to the island in the North Atlantic, whose popularity has grown exponentially in recent years thanks to television shows like Game of Thrones. All 29 of Wow’s flights scheduled for Thursday were canceled and 2,700 passengers were asked to check with other airlines to get to their destinations. Read more