Wow Air, an Icelandic Budget Airline, Suspends Service

Wow Air, an Icelandic budget airline that has been scrambling for money, ceased operations on Thursday after talks over financing fell apart.

Wow canceled all flights on Thursday morning and advised passengers to check for alternatives with other airlines.

Gudjon Helgason, a spokesman for Keflavik Airport near Reykjavik, Iceland, said no large groups were stranded at the airport because the airline had sent messages to passengers telling them that the flights would be canceled.

“There’s no chaos or anything like that,” Mr. Helgason said.

The airline, which in 2018 flew 3.5 million passengers to places like New York and Toronto, had been desperately trying to shore up its finances.

After raising money through bonds in September, the airline wrote to bondholders two months later to say it was seeking additional financing.

Skuli Mogensen, the founder and chief executive, blamed several factors for the collapse: “bad publicity”; a difficult environment that was exacerbated by the collapse of another budget airline, Primera; and “stricter payment terms” that put pressure on the company’s cash flow.