Last month, WOW air announced plans to restructure and “return to its roots.” The Icelandic company said, “After a challenging year, WOW air is now restructuring and simplifying its operations to return to its roots as a profitable ultra-low-cost airline while discussions with Indigo Partners progress.”

This means the carrier will reduce its fleet from 20 to 11 planes, with its Airbus A330 planes returning to lessors and four A321s being sold “in a transaction that will improve WOW air’s liquidity by more than 10 million USD.”

The airline also said new flight schedules will start in January. Recently added flights to Delhi (DEL) and Los Angeles (LAX) are being cut.

Some 111 full-time staff has been laid off, and contractors and short-term staff “will not be renewed for the time being.”

According to CEO and founder Skuli Mogensen, “This is the most difficult day in the history of WOW air. We have dedicated people who have worked hard to make WOW air a reality and it breaks my heart to downsize the company. However, in order to ensure our future and preserve WOW air in the long run, we unfortunately must take these drastic measures.”

The carrier reduced routes in the last few months and a plan by Icelandair to acquire WOW was abandoned.