In the early hours the company announced it had halted the day’s flying while completing a deal to raise new funds. But just a few hours later Wow announced it had “ceased operation” with all flights cancelled.  “Passengers will quite rightly be appalled that Wow Air was still selling tickets right up to the moment it collapsed, knowing full well that any tickets sold would likely not be worth the paper they are printed on,” said Rory Boland, editor of Which? Travel magazine. The carrier operated between the UK, Iceland and North America. 

In a statement it said: “Wow Air has ceased operation. All Wow Air flights have been cancelled.” 

It advised passengers to seek “reduced rate, so-called rescue fares, in light of the circumstances”. 

Wow added they may win compensation and “in case of a bankruptcy, claims should be filed to the administrator/liquidator”. 

The Civil Aviation Authority said travel firms with an Atol licence must bring customers home, while other passengers could request a refund through credit and debit card providers, or make a travel insurance claim. 

Wow Air was launched by Icelandic entrepreneur Skuli Mogensen in 2012. In the past six months the low-cost airline has been involved in turbulent negotiations over a potential sale. 

Mr Mogensen reportedly told his employees last Thursday: “Wow was clearly an incredible airline and we were on the path to do amazing things again.” 

Crews have launched 51 legal cases against major British carriers over fears that toxic cabin air can cause “irreversible health problems”. 

Among the airlines being sued, EasyJet and British Airways denied there was a problem and Thomas Cook refused to comment.

Virgin Atlantic was also contacted over the action, which is backed by the Unite union. 

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