Quote:
Originally Posted by zahav
I think those Icelandic airlines are a bit sketchy, I feel like it could be Primera Air 2.0 I hope that's not the case, having an airline ditch those US destinations and then explicity plug it shows definite optimism. They are also unashemdly calling service such YVR-DUB (via Reykjavik). It's like they aren't even pretending that Iceland is the ultimate destination.
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I'd differentiate between WOW and Icelandair.
The latter has been around since the 1930s and has weathered multiple recessions. It is more a 'full-service' airline than WOW, which is a ULCC. Full-service airlines tend to do better during times when fuel prices are high because they have a higher-yielding customer base to draw from.
WOW has only been around since 2012. They've had a huge growth spurt, but when they looked for investors recently, they revealed they were losing money. The ULCC long-haul model is very sensitive to fuel prices as fuel makes up close to 50% of operating costs and they serve a clientele that is price-sensitive.
I suspect each airline will certainly be pausing their growth for multiple reasons - fuel prices, congestion at Keflavik airport and the USD: Icelandic krona exchange.