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Payments General

Icelandair signs agreement to buy WOW Air for nearly USD 18 mln

Thursday 8 November 2018 | 10:48 AM CET

Icelandair has signed an agreement to buy competing Iceland-based airline WOW Air from its founder for about USD 18 million in an all-share deal.

WOW has focused on low-cost travel across the Atlantic, using smaller single-aisle planes to fly between Iceland and destinations in the US and Europe. Icelandair has been operating similar routes focused on the business market.

The two airlines, which according to Icelandair would continue to operate under separate brands, use Keflavik Airport as their main hub between Europe and North America, and together they have a combined 3.8% share of the transatlantic market.

Lately, both carriers have faced challenging financial situations, but Icelandair shares jumped by nearly 50% after it announced the WOW takeover. The deal has yet to be approved by Icelandair Group’s shareholders but is expected to be passed within weeks.

More: Link
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