Airlines Lost $1.7B From Volcano: IATA

The airline industry has lost more than $1.7 billion because of the disruptions to air travel across Europe from the volcano in Iceland, an industry group said.
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Updated from 4:56 a.m. EDT

NEW YORK (

TheStreet

) -- The airline industry has lost more than $1.7 billion because of the disruptions to air travel across Europe from the volcano in Iceland, an industry group said.

The International Air Transport Association said Wednesday that for the three days of April 17-19, when disruptions were greatest because of excessive volcanic ash in the sky, airlines lost revenue of $400 million a day. Volcanic ash can cause engine failure.

"Lost revenues now total more than $1.7 billion for airlines alone. At the worst, the crisis impacted 29% of global aviation and affected 1.2 million passengers a day, said Giovanni Bisignani, IATA's CEO, in a statement.

He said the scale of the disruptions to air travel was greater that Sept. 11, 2001, when airspace was closed for three days after the terrorist attacks in the U.S.

Many European carriers were resuming long-haul flights Wednesday as flight bans were being lifted as the airspace was clearing.

-- Reported by Joseph Woelfel in New York.

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