Airline industry continues to count ash cloud losses
Submitted by michael on Thu, 29/07/2010 - 11:39The airline industry is continuing to count the losses of the ash cloud disaster after easyJet revealed a £65m loss in ash cloud disruption and refunds yesterday. Last week, rival low-cost airline Ryanair said it expected to lose €50m as a result of compensation claims and British Airways revealed a £100m dip in June on top of its ever increasing debt.TUI has also reported £90m damage in profits as a result of the airspace closure and the Air France- KLM Group expects the situation to cost €200m. As a result of the damaging costs, several airlines are asking for a rethink into the EU261 legislation that forces them to pay out hotel stays, meals or transfers for its customers. Meanwhile despite its £65m, easyJet still posted a 5.3% in total revenue to £759.2m and has sold 64% of its fourth quarter seats. Additionally, total revenue per seat increased by 3.5% to £53.23, driven by passenger revenue growth of 4.5%. “The company continues to expect to make a pre-tax pro the year of between £100 million and £150 million at current exchange rates and fuel prices,” said easyJet Chief Executive Carolyn McCall. Additionally airport operator BAA, which runs Heathrow and Stansted, has announced that the ash cloud is expected to cost £8.4m and the situation contributed towards a drop in passenger numbers. It said the BA strikes had also been a factor in the 3.5% fall in passenger traffic in the last six months. “Heathrow and Stansted delivered an encouraging performance during the first half of the year and this partly offset the impact of volcanic ash and the British Airways cabin crew strikes,” said BAA CEO Colin Matthews. “Both airports continue to benefit from strong retail momentum with income per passenger up 10%.”

