Icelandic budget airline WOW Air ceases operations

Icelandic budget airline WOW Air ceased operations on Thursday, stranding passengers across two continents.

In a statement on its website the airline, which had earlier suspended all its flights, told passengers there would be no further flights and advised them to check flights with other airlines for ways to reach their destinations.

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

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."