Efforts to shore up the airline’s finances have left WOW’s future in the balance in recent days.

US investor Indigo Group came in for WOW after Icelandair walked away from negotiations last November over an €18 million takeover.

However, WOW confirmed last week that talks with Indigo had broken down, adding it had resumed discussions with Icelandair.

Talks between the two Icelandic carriers reopened on Wednesday (March 20) but Icelandair confirmed on Sunday (March 24) it had decided not to invest.

WOW confirmed on Sunday it had entered discussions with bondholders over a voluntary restructure, including converting existing debt into equity, a move which took a major step forward on Tuesday (March 26).

“Bondholders have formally approved to convert their bonds into equity, and formal discussions with investors have commenced to fund the company,” said the airline in a statement.

“This is an important milestone in financially restructuring the company and secure the long-term sustainability of WOW Air.”