Less than two years after it arrived with great fanfare, Wow Air’s nonstop service from Pittsburgh to Iceland, backed by $800,000 in subsidies, could be in jeopardy.
Local travelers trying to book flights beyond mid January on the airline’s website will find a notice of “no flight” and Wow acknowledged in a statement Wednesday it is re-evaluating its winter schedule without specifically mentioning Pittsburgh or any other city.
Wow tied the move to a decision to reduce its jet fleet by two Airbus A320s and two Airbus A330s “in cooperation with its lessors.”
“This is a part of necessary restructuring of the airline and to ensure maximum utility of its remaining fleet. This restructuring will not impact Wow Air´s current plans to fly to India,” the carrier stated.
“Regarding other destinations, the winter schedule is currently under re-evaluation due to changes in Wow Air’s fleet but nothing has been finalized.”
A spokesman for the airline had no information regarding Pittsburgh beyond what was in the statement.
Bob Kerlik, spokesman for the Allegheny County Airport Authority, which operates Pittsburgh International Airport, said, “We understand Wow is evaluating their winter schedule and we’re talking with them about how that will impact the route.”
He noted that regardless of what happens with the flight, British Airways will be starting nonstop service to London’s Heathrow Airport April 2.
Nonetheless, if Wow drops its service from the Findlay airport, it would be a significant loss.
The move would come on the heels of the decision by Delta Air Lines to end its nonstop flight to Paris last September, citing in part increased trans-Atlantic competition from the likes of Wow and others.
Landing Wow was considered a coup. At the time, authority CEO Christina Cassotis called it “huge,” saying that getting year-round trans-Atlantic service had been her goal since she first arrived in January 2015.
Without Wow, the airport still would have new British Airways service and a Condor Airlines’ seasonal flight to Frankfurt.
Wow already has dropped service to three Midwestern markets — St. Louis, Cincinnati, and Cleveland. The Cincinnati and Cleveland flights ended in October after starting in May, and the St. Louis service will stop in January.
The airline’s Pittsburgh flight, which operates four days a week, started in June 2017 and is backed by $800,000 in subsidies over two years from the airport authority. In addition, Wow does not have to pay landing fees over the same period. The waiver of such fees is standard for all airlines starting new routes from Pittsburgh.
British Airways will receive $3 million over two years and Condor is getting $500,000 over the same period for a flight that started last year.
William Swelbar, chief industry strategist for Richmond,Va.,-based Delta Airport Consultants, said he is not surprised that Wow is undergoing a restructuring.
He said that ultra low-cost trans-Atlantic carriers are being tested financially, in part by fuel prices and in part by competition from more traditional airlines.
“I think this was always kind of a question mark with respect to low-fare trans-Atlantic airlines. Now more traditional carriers are offering basic economy. They’re matching them,” he said. “The trans-Atlantic is a real battleground.”
He noted that Icelandair has been engaged in an effort to buy Wow, its low-cost competitor which reportedly has been losing money.
Whether Pittsburgh would survive a Wow restructuring and scheduling re-evaluation is up in the air, according to Mr. Swelbar.
“I don’t know how Pittsburgh’s performed. If lessors are involved and the fleet is being trimmed, they’re taking a look at their entire network,” he said. “I would say that Pittsburgh would not be immune to what’s going on here but there’s a lot to look at.”
News about Wow comes a day after the authority confirmed that it had paid Qatar Airways $1.48 million in subsidies after its twice-weekly cargo flights over the last year failed to meet agreed-upon tonnage goals.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
Updated at 6 p.m. Nov. 28, 2018
First Published: November 28, 2018, 8:07 p.m.
