Iceland rocked by demise of airline that fuelled boom

Wow Air helped turn tourism into Iceland’s biggest cash cow, fuelling a boom that dragged the nation out of its financial collapse more than a decade ago.

That all came to an end this week, when Wow was forced to cease operations after it was unable to find backers to cover its losses. Icelanders are now assessing the damages and the most dire forecasts predict a potential plunge of as much as 2.7% in GDP.