Scottish passengers have been urged to check their flights after an Icelandic airline ceased operations.

In the early hours of Thursday morning, Wow Air said it had cancelled the day’s flights while completing an agreement with a group of investors over raising new funds.

It later announced it had “ceased operations” with all future flights – including its summer service from Edinburgh – cancelled.

Wow Air said in a statement: “Wow Air has ceased operation. All Wow Air flights have been cancelled.

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“Passengers are advised to check available flights with other airlines.”

The carrier connected Europe and North America via Reykjavik, with UK flights serving London Gatwick, London Stansted and Edinburgh.

Although thousands of passengers in England were left stranded on Thursday, the Edinburgh service is not scheduled to begin until June.

An Edinburgh Airport spokesman told STV News that the summer service was programmed for three days a week, inbound and outbound.

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Passengers have been advised to contact Wow Air for more information, however, the airport has highlighted that flights to Reykjavik will still be served from the Scottish capital by EasyJet.

EasyJet, Icelandair and Norwegian are offering reduced rescue fares for Wow Air passengers on certain routes.

Wow Air added: “Passengers may also be entitled to compensation from Wow Air, including in accordance with European regulation on Air Passenger Rights.

“In case of a bankruptcy, claims should be filed to the administrator/liquidator.”

The Civil Aviation Authority said travel firms holding an Atol licence are responsible for making alternative arrangements to bring their customers home if they are currently overseas with a Wow Air booking.

The regulator also said there are a number of options for passengers who booked flights via other methods, including requesting a refund through credit and debit card providers, or making a claim with their travel insurance provider.

Rory Boland, editor of Which? Travel magazine, said: “Passengers will quite rightly be appalled that Wow Air was still selling tickets right up to the moment it collapsed, knowing full well that any tickets sold would likely not be worth the paper they are printed on.

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“You will need to check if you booked your flights as part of a package as this will mean you are Atol-protected and will be entitled to your money back.

“If not, you may still be able to claim through your travel insurance or card issuer but it will depend on your circumstances. You can visit which.co.uk for more advice on your rights.”

Wow Air was founded by entrepreneur Skuli Mogensen and began flying in 2012.

During the past six months the low-cost airline has been involved in turbulent negotiations over a potential sale, first to Icelandair and then to US-based private equity firm Indigo Partners, which has stakes in several other airlines including Wizz Air.

A number of airlines have suffered financial troubles in recent months, partly due to increased fuel costs and competition.

Two budget carriers – Primera Air and Cobalt Air – collapsed in October.

Flybmi went out of business in February, while the cut-price sale of Flybe to a consortium consisting of Virgin Atlantic, Stobart Group and investment firm Cyrus Capital was recently completed.