A start-up carrier is to launch low cost flights from Stansted to Iceland this summer.

WOW Air plans to start flying to Iceland’s main airport at Keflavik three times a week from June 1.

An introductory fare of £69 each way including taxes and a 20kg baggage allowance is valid for flights booked before midnight on February 24 for travel between June and September.

The new airline, operating two leased 168-seat Airbus A320s, also plans a network of flights to Iceland from 11 other European cities, including Copenhagen, Warsaw, Krakow, Berlin, Stuttgart, Cologne, Zurich, Basle, Paris, Lyon and Alicante.

Baldur Baldursson, chief executive of the airline which was founded last year, said: “We are aware that it is a brave move to launch a new airline in the present economic climate but have spotted an obvious gap in the market for low-cost flight options from Iceland to a number of European cities.

‘We have extensive experience in the Icelandic tourism market and have ambitious plans for the airline – including an increase in frequency to London in the spring of 2013.”

The planned launch comes as EasyJet plans a year-round service to Iceland from Luton from the spring.