The financial damage caused by Iceland’s ash cloud rises

The European Union’s transport chief released the cost of the Icelandic volcano’s ash cloud, and it is much higher than originally predicted. Originally predicted to be roughly $1.7 billion, Eyjafjallajokul’s ash now looks to have cost airlines $2-3 billion.

The estimate includes every department in the airline industry that was affected by the 100,000 or so flights grounded for five days including airlines, airports, tour operators and ground handlers.

In a news briefing Tuesday, European Transport Commissioner Siim Kallas told reporters, “”Now, as we are getting back to normal, our focus can shift to relief
measures for the industry. This is about practical
measures to provide relief to the air transport sector so they can
weather this crisis.”

For the time being certain flight restrictions will be waived by the European Union and route charges will be deferred to assist with airlines attempting to recover from their losses.

Source: Business Week

Image: EPA