The future of Wow Air remains in the balance, as the troubled Icelandic carrier reports it has ended takeover talks with full-service rival Icelandair.

The Independent reports that Wow Air cancelled its morning flight from Reykjavik to Gatwick and the return, as tweets from disgruntled passengers suggest.

Last week a potential investor in the airline, Indigo Partners, cancelled its acquisition bid. Wow then said it had “started discussions” with Icelandair.

However those have now been called off.

A statement posted on Wow Air’s website yesterday said: “Icelandair Group has decided that its possible involvement in Wow Air’s operations, as announced on 20 March 2019, will not materialize. Therefore, all discussions between the parties have been cancelled.”

It then said that Wow Air bond holders and other creditors are discussing a voluntary restructuring, which would include converting debt into equity.

Icelandair signed a purchase agreement for Wow Air last November, however abandoned it a few weeks later. Wow Air then returned several aircraft to lessors and announced it would cut routes, and consolidate its UK operations at Stansted.

More information is expected today.