Grounded airlines losing more than €7m a day
THE country's two top airlines are losing more than €7m every day as the volcanic ash cloud from Iceland continues to cause travel chaos across Europe.
Some €28m has been shaved off Aer Lingus's and Ryanair's combined sales since the volcano erupted last Wednesday, spewing ash several kilometres into the atmosphere.
The International Air Transport Association estimated yesterday that the biggest air traffic disruption since World War Two is costing the industry at least €150m a day in lost revenues in Europe alone.
Bloxham Stockbrokers estimates that each day an airline is forced to cancel services, its annual revenues are set back by around 0.25pc.
And while the market shrugged off the first few days of cancellations, stockbrokers are bracing for heavy selling in airline shares this morning.
"Airline investors are forgiving of disruptions over one or two days as it's the nature of the business," said one trader. "But when you're seeing reports that the plume of ash could hang over Ireland and other parts of Europe for up to a week, you're talking about a more material impact on earnings."