The carrier previously said it was in the final stages of completing an agreement over raising new funds with a group of investors.
Wow Air said in a statement: “Wow Air has ceased operation. All Wow Air flights have been cancelled.
“Passengers are advised to check available flights with other airlines.
“Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances.”
The airline operated out of Edinburgh Airport for summer service flights to Reykjavik.
Travellers were advised this morning by the airport to check with the airline before travelling.