For those hoping for ever cheaper fares on long-haul flights, this month’s takeover of Icelandic airline Wow is not good news.

The struggling airline, which specializes in ultra-cheap flights between North America and Europe, was taken over by Iceland’s flagship carrier, Icelandair, for just $18 million. Its rescue is a reality check for an industry hoping to apply the budget flying model to long-haul routes.

And for now it means that passengers from, say, Washington will likely have to pay more than the $99 teaser rates previously offered for the nine-hour trip to the Icelandic capital.

Kristjan Sigurjonsson, editor of local travel news site Turisti, says: “It simply costs more than $99 to fly between continents and Wow air has not found ways around it.”

Source: The Associated Press

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