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Within a short time span, competitor Norwegian (NAS.OL) began offering non-stop transatlantic flights for a very competitive price, making it less desirable to have a cheap Wow Air flight with a stop-over in Iceland. Passengers are concerned they will not get a refund on the abruptly cancelled flights.

Some airlines are offering reduced rates to stranded WOW air passengers after the low-priced airline went bust.

"Our team is now getting in touch with our customers in transit via SMS and in-app push notification for more information", Hopper CEO and co-founder Frederic Lalonde said.

The agreement refers to voluntary repatriation assistance to passengers stranded as a result of financial failure by another airline.

This only applies to customers returning to Iceland up to April 14 and they must request it before April 7, or they will have to pay out of their own pocket to get home.

The Icelandic airline was founded in November 2011 and served 36 destinations across Europe, North America, and Asia. WOW Air alluded to possible refunds, but suggested customers talk to their credit card companies.

The airline tried to scale things back, in order to, "simplify operations, return to our low-priced roots and focus on ultra cheap flights", according to their website's summary of 2018 operations.

These are known as rescue fares. Thousands of passengers have been stranded, according to BBC News.

WOW AIR The message on the budget airline’s website this morning
WOW AIR The message on the budget airline’s website this morning

Those who bought their ticket from a European travel agent (within the European Economic Area) as a part of a package tour (that which includes flights and accommodation or other services) are protected by the Package Travel Directive and these passengers should contact their travel agent to arrange another flight.

Passengers who didn't book their flights through a registered travel agent have a couple of other options. When those negotiations failed, the American company operating the airline Wizz, Indigo Partners, expressed interest, but also passed on investing.

The airline has gone silent on Facebook, but that hasn't stopped customers from using its most recent posts to vent their frustrations.

"If not, you may still be able to claim through your travel insurance or card issuer but it will depend on your circumstances".

The flyer was in desperate need of cash after grounding flights on Monday too as it struggled to stay afloat. Fine print may also include cover for "travel disruption", when a passenger can't reclaim the costs from another source.

Passengers may wish to contact their credit card dispute resolution department to file a claim, but should prepare for delays.

Hummer reminds policyholders that financial default comes with a few restrictions, such as you must have bought the policy within 10 to 21 days of your initial trip deposit and coverage is not available for the first 10 to 14 days after the purchase of the policy.

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