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April 19, 2010

Volcano Brings Down Air Industry Profits

It is estimated that the cloud of volcanic ash hanging over Europe, stopping air traffic for a total of six days so far, could cost the industry $300m a day in losses. An estimated 1.1 million have been affected by flight cancellations so far, with only 7,500 flights reported to have op

By cms admin

It is estimated that the cloud of volcanic ash hanging over Europe, stopping air traffic for a total of six days so far, could cost the industry $300m a day in losses.

An estimated 1.1 million have been affected by flight cancellations so far, with only 7,500 flights reported to have operated in the air.

The cumulative lost departure traffic will be 10.5% of the total for the month of April.

The shutdown has cost British Airways alone almost £100m ($160.4m).

It is also costing Air France-KLM about €35m ($47m), Australian carrier A$1.5m ($1.4m) and Thai Airways International 100m baht ($3.1m) a day.

British Airways, Deutsche Lufthansa AG and Air France-KLM Group recommended air bodies lift restrictions on airspace, with new test flights into ash cloud showing no sign of injury to aircraft performance.

The International Air Transport Association (IATA) has recommended European governments continue services using flight paths that are clear of volcanic ash.

IATA estimated that lost revenue from the restrictions amounts to as much as $300m a day and it will take nearly six days for air traffic to get back to normal once the ban ends.

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