Shutting down Britainâ€™s airspace could cost airlines more than Â£100 million if the disruption carries on into the weekend.
The wider economy will also suffer as tourists, businessmen and cargo, including fresh food for supermarkets, are unable to get into the country.
British Airways grounded hundreds of flights yesterday but is yet to calculate the potential losses. In the past, similar standstills caused by fog have cost the airline between Â£10 million and Â£20 million a day.
The disruption to services had an immediate impact on Ryanair after the airline grounded all of its British and Irish flights. More than Â£70 million was wiped off the companyâ€™s market value.
There have only been a couple of other examples of large-scale disruption caused by volcanoes. One incident in Alaska in 1989 resulted in the cancellation of North American flights for several days. US airlines estimated the disruption cost them $100 million.
source: Times Online