Iceland’s reign as Atlantic pit stop fades with airline collapse

(Bloomberg) — The collapse of the last remaining Icelandic budget airline this week has put an abrupt end to the volcanic island’s pit stop for frugal transatlantic travellers.

Fly Play hf. ceased operations Monday after four years because of poor ticket sales and an unsuccessful turnaround plan. Thousands of passengers were stranded, and hundreds of people lost their jobs. The company was the successor to Wow Air Hf, which shut down in 2019 over a lack of financing and high costs, and even employed some of the same executives.

Now, the no-frills business model of flying passengers from Europe to America with a stopover near Reykjavik may be disappearing. Legacy airlines such as Ireland’s Aer Lingus are raising their game by offering competitive pricing and expanding their networks throu