Wow Air, which flies from Gatwick, Stansted and Edinburgh to Reykjavik with onward connections to North America, has admitted that its results are “materially worse than originally anticipated”.
Skuli Mogensen, the airline’s chief executive, has written to bondholders saying “a number of external and internal events have unfortunately worsened significantly” since a bond issue in September.
He blamed Primera Air’s collapse for escalating “negativity” about Wow Air’s financial position, which he said “has further worsened an already challenged situation”.
A sale-and-leaseback deal that was expected to raise $25m (£11.7m) has been cancelled.
The airline has placed four aircraft in storage
Aircraft TF-BRO - A320 to Shannon
Aircraft TF-SIS - A320 to Shannon
Aircraft TF-LUV - A333 to Tarbes
Aircraft TF-WOW - A333 to Tarbes
The pair of wide-bodied A330s landed in the early hours of Wednesday morning in Tarbes Airport, which is a “graveyard” for retired planes.
A planned takeover by Wow’s bigger rival, Icelandair, has stalled. The €18m (£16m) deal was due to be approved at a shareholders´ meeting on 30 November.
But Bogi Nils Bogason, Icelandair Group’s chief executive, said: “The share purchase agreement contains numerous conditions which will have to be fulfilled before the meeting.
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