Icelandair shares fell sharply in the first trading of the day on the Iceland Stock Exchange, RÚV reports. Just before 10.00am, the company’s exchange rate had fallen by nearly 20%.

Björgólfur Jóhannsson, CEO of the company, announced his resignation and the company’s projected profits were lowered. Björgólfur stated earlier this month that Icelandair was well-positioned to respond to market challenges.

Icelandic airlines Icelandair and WOW Air have faced difficulties recently due to rising fuel costs, the slowing growth of tourism to Iceland, and competition from abroad.

WOW Air is currently searching for investors who would loan the company up to ISK 12 billion ($113m/€96m) over the next 18 months. The two airlines are a key pillar of the tourism industry, transporting 80-85% of all travellers that visit Iceland.