HUNDREDS of passengers have been left stranded at Gatwick Airport after an airline went bust.

Holidaymakers flying on Wow Air were left stuck in terminals after the company announced today that it was cancelling all flights.

The airline had been scheduled to make four flights betweens Iceland’s Reykjavik Airport and Gatwick yesterday.

The Icelandic airline posted a short statement on its website saying: “Wow Air has ceased operation.

“All Wow Air flights have been cancelled.”

It 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."

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

Despite this, the website’s booking features remain in use.

Consumer watchdog Which? found Wow had been selling tickets to passengers up to one hour before announcing its closure.

A statement on the Gatwick Airport Twitter page said: “We are sorry that Wow Air has ceased trading and all flights are cancelled.

“If you are affected, we advise you not to come to the airport but to check with the airline or on the CAA’s website for more information.”

Wow Air started 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.