Passengers' Rights In Wake of WOW Air Collapse

In the wake of the sudden WOW air collapse, passengers who booked tickets directly with the airline may be left holding the bag with regard to any tickets they purchased.

“Passengers should not count on assistance or refunds from WOW Air since claims are usually the last items to be paid out in bankruptcy estates,” said Henrik Zillmer, CEO of AirHelp, the air passenger rights company.

MORE Airlines & Airports

Airlines Asked to Issue Refunds Following Bailout

Spirit Suspends Flights to and From Five Airports

Southwest Renews Nationwide Sale With Flights From $39...

For those passengers who booked flights with WOW through a travel agency or on a credit card, Zillmer says the travelers’ best course of action is to try and get refunds from the agency or cancel the credit card payment.

“Passengers may be able to claim a refund for their flight if it was booked via a travel agency or partner airline. Travel agencies or partner airlines may be responsible, depending on whether flights are covered by travel insurance,” explained Zillmer.

If a trip was booked as a package, coverage should be guaranteed, he added.

WOW Air announced today that it has canceled all flights and ceased operations after failing to reach an agreement with investors. The announcement comes after the Icelandic budget carrier's most recent talks with rival Icelandair Group fell through.

According to Bloomberg, WOW Air canceled all 29 of its scheduled flights for Thursday, leaving some 2,700 travelers in limbo.

Those passengers who booked directly with WOW Air and used a credit card as payment can also try to contradict or cancel the payment before it’s processed, advised Zillmer, an expert in air passenger rights.

As for passengers who are currently on a trip somewhere and wondering how to get home without their WOW air return ticket, Zillmer said there may be some options.

“Stranded passengers may be able to secure a ticket back home if they booked their ticket as part of a package deal. Other airlines may also offer special repatriation fares for impacted passengers,” said Zillmer.

And finally, Zillmer noted that passengers who suffered from any previous disruptions on WOW Air and were eligible for compensation are unlikely to have those claims paid out at this point. These claims are also ranked quite low in a bankruptcy estate. Typically only high-ranked liabilities, if any, are paid out, he said.

WOW Air had been facing fears of potential collapse for several months, announcing plans to sell aircraft, cut service to multiple major U.S. cities and even canceling dozens of flights at the last minute earlier this week.