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But no consolidation in Iceland: Icelandair gave up its proposed purchase of competitor Wow Air. That wants to continue now alone.
In fact, both could have benefited: Earlier this month, Icelandair announced the resumption of rival Wow Air. This would have eliminated the price war for flights to and via Iceland. But now the deal is broken, as Icelandair confirms in a message on Thursday 29 November.
Already Monday, Icelandair had announced on the stock market that it was unlikely that all the conditions of the merger would be met before November 30. That day, the group holds its general assembly. At that time, it was more like an extension of time. It was different now. It was an ambitious task from the start, commented the two companies on the failure of the agreement. At the same time, they express their thanks for everyone's efforts.
Both airlines have problems
The two companies have not had an easy life lately. Icelandair had to issue a warning on its profits this year and correct its own forecasts by more than a quarter. The annual general meeting includes, among other things, a capital increase on the list of points to be approved. Wow Air is also in trouble. The loss on the low cost airline amounted to $ 47.7 million in the first six months of 2018, double the amount of the same period last year.
Airports, leasing companies and other suppliers have become stricter and require faster payments from Wow Air. In addition, customers with bookings retain. Finally, a planned sale / leaseback transaction has failed. The airline therefore misses essential revenues. That's why Wow Air has already taken the drastic step of making four planes to lessors.
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