Icelandair to buy rival budget airline WOW air in $18 million deal

Posted at 11:41 AM, Nov 05, 2018
and last updated 2018-11-05 12:41:55-05

Icelandair Group has announced plans to buy rival budget airline WOW air for about $18 million, the company announced Monday.

WOW air was previously a competitor to Icelandair as it boasted flights as low as $99, making it an attractive option for budget travelers.

The two flight carriers will continue to operate under their different brand names. 

"WOW air has in recent years built a strong brand and enjoyed great success in the company‘s markets to and from Iceland and across the Atlantic," said Bogi Nils Bogason,  the interim president and CEO of Icelandair Group. "There are many opportunities for synergies with the two companies but they will continue to operate under their own brands and operating approvals. The tourism industry is one of the cornerstones of the Icelandic economy and it is important that flights to and from Iceland will remain frequent.

WOW air currently offers a number of U.S. flights to Iceland. The following U.S. airports offer WOW air flights:

Boston BOS

Chicago ORD

Dallas/Fort Worth DFW

Detroit DTW

Los Angeles LAX

New York EWR

New York JFK

Orlando MCO

Pittsburgh PIT

San Francisco SFO

St Louis STL

Washington, D.C./Baltimore BWI