If Indigo takes a stake in WOW, what happens to Icelandair?

WOW was in deep trouble for a while. Being an LCC airline is a tough business, with low margins. Then adding long-haul to this complicates the business more and shrinks the margins even more.

To further complicate things for WOW, their market share growth did the worst thing possible – it attracted the attention of the network carriers. These airlines have much bigger margins, even in a low margin business. The traffic growth through Reykjavik caught the attention of the big US airlines and they decide to take a bite out of that flow.