Iceland's low cost carrier Wow Air has canceled all flights and told passengers to book with other airlines.

Its website has a travel alert that begins: "Wow Air has ceased operation. All Wow Air flights have been canceled."

The alert said people who wanted to travel should now look for "so-called rescue fares" which may now be offered by rival airlines.

Wow added that those who made bookings by credit card or via a European travel agent should try to get their money back through those businesses. It said some passengers may be entitled to compensation from the airline itself.

In November, it was announced that Icelandair Group, the holding company of rival carrier Icelandair, would acquire the entire share capital of Wow Air but that proposal fell apart within weeks.

Further talks between the two airlines ended Sunday.

Founded by chief executive Skuli Mogensen, Wow Air took off for the first time in 2012.

The carrier employed more than 1,000 people by 2018 and in the same year carried around 3.5 million passengers in its 11 aircraft.