Budget airline WOW Air ceases operations

REYKJAVIK, Iceland (FOX 2) - Icelandic budget airline WOW Air says it has ceased operations, stranding passengers across two continents.

A statement on its website says this is the end of operation of WOW Air, and that all WOW Air flights have been cancelled. Passengers are being advised to check flights with other airlines Thursday.

The airline, founded by entrepreneur Skuli Mogensen, began operations in 2012 and specialized in ultra-cheap flights between North America and Europe, with flights to airports in cities including Detroit, Washington, D.C, New York, Paris, London and its Reykjavik hub.

It specialized in ultra-cheap flights between North America and Europe, with flights from 27 airports, including Detroit, Washington, D.C, New York, Paris, London and its Reykjavik hub.

It's not clear yet if passengers will be refunded for flights. Passengers whose ticket was paid with a credit card are advised to contact their credit card company to check whether a refund of the ticket cost will be issued.

It's not clear yet if passengers will be refunded for flights. Passengers whose ticket was paid with a credit card are advised to contact their credit card company to check whether a refund of the ticket cost will be issued.

Its bankruptcy comes after six months of turbulent negotiations to sell the low-cost carrier, first to its main rival and flag-ship carrier Icelandair and later to Indigo Partners, an American company operating the airline Wizz.

"I will never forgive myself for not acting sooner," Mogensen said in a letter to employees Thursday. "WOW was clearly an incredible airline and we were on the path to do amazing things again."

Tourism is Iceland's largest industry and WOW's disappearance is set to have an effect on this summer's high season.

In its early years the airline expanded fast to 37 destinations and reported up to 60 percent annual growth in passenger numbers. Its revenue per passenger, however, has not kept up and fell by about 20 percent in 2017, according to the last earnings report.

WOW grounded at least six planes in North America that were set to leave late Wednesday from Montreal, Toronto, Boston, Detroit, New York and Baltimore.

In Europe, Reykjavik-bound planes from seven cities - Amsterdam, Dublin, Paris, Brussels, Berlin, Frankfurt and Copenhagen - did not take off Thursday morning.

FOX 2 reported on this story from Southfield, Mich. 

The Associated Press contributed to this report