[7][8] The collapse of the króna due to the Icelandic financial crisis in 2008 and the publicity brought by the 2010 eruption of Eyjafjallajökull to its natural features led to a significant rise in tourism there.

At the end of October 2012, following the acquisition of its operations, flights to Gatwick and Copenhagen saw frequency increases, services to Berlin, Kaunas (which was later dropped again), Salzburg and Warsaw had begun.

[20][21] Flights to Los Angeles and San Francisco began in June 2016 using two Airbus A330-300 planes leased from Air Europa.

[28][29] On 27 November 2018, Wow Air announced that it had returned four aircraft to their lessors as a sale and lease back offer fell through and the company's financial situation worsened due to stricter demands by suppliers and contractors.

[33] The same day, Indigo Partners, which has stakes in several ultra low-cost carriers, reached a preliminary agreement to buy Wow Air.

[34] Shortly after, Wow Air announced major adjustments to its operations: the staff was reduced by 360 down to about 1,000, a further five aircraft (four Airbus A321s and the remaining A330) were to be phased out and the A330neos ordered would be cancelled.

[39] On 25 March 2019, the day after talks with Icelandair ceased, several Wow Air flights were cancelled, fueling speculation as to the airline's fate.

[42] On 26 March 2019, Wow Air announced the conversion of bonds into equity and ongoing discussions with bondholders to secure the company's sustainability.

[46][45] The founder of the company, Skúli Mogensen, has spoken of a possible resurrection of the airline[47] with a new, slow-growth business plan, if he receives the $40 million he needs.

[49] The loss of flights harmed Iceland's tourism and fishing-dependent economy and caused an increase in unemployment; the airline previously delivered over one quarter of all visitors to Iceland, and its failure caused tourist visits to drop 16 percent overall and 20 percent from the United States, prompting a decline in vacation home and hotel construction.

[citation needed] In September 2019, USAerospace Associates announced the acquisition of Wow Air's assets and said it would start flights the next month between Washington Dulles International Airport and Keflavík using a United States AOC.

[58] In November 2020, RÚV interviewed USAerospace chairman Michele Roosevelt Edwards, who claimed that Wow would launch flights from Keflavík and various U.S. airports in early to mid-2021, that it was obtaining ten Airbus A321s, two of which had already been delivered and painted, and that she controlled a substantial amount of Icelandair stock; however, RÚV could not independently verify these claims, and she contradicted her 2019 statements that Wow had full financial backing.

[59] Before March 2019, Wow Air had operated services to a total of 20 year-round and 6 seasonal destinations[1] in Europe, the U.S., Canada, and the Middle East from its base at Keflavík International Airport.