BA says ash cloud costing group 15-20 million pounds a day
British Airways said on Monday that lost revenue and one-off charges linked to the volcanic ash cloud was costing the group 15-20 million pounds (17-23 million euros, 23-30 million dollars) a day.
“British Airways estimates that the lost passenger and freight revenue together with the costs incurred on supporting passengers is approximately 15-20 million pounds a day,” the airline said in a statement.
BA moved to reassure investors however, saying it had “significant funding available… to sustain a considerable period of closure of the UK’s airspace”.
The airline said that when flying restrictions were first imposed last Wednesday, BA had more than 1.7 billion pounds of cash and more than 400 million pounds credit lines available to it.
BA’s statement meanwhile came as the EU Commission said that the European Union was prepared to authorise exceptional financial aid to airlines hit by the closure of air space caused by the volcanic ash cloud.
British Airways chief executive Willie Walsh said in his company’s statement that the shutdown was an “unprecedented situation that is having a huge impact on customers and airlines alike”.
The share price of BA was down 3.15 percent at 227.6 pence in midday trade on London’s benchmark FTSE 100 index, which was down about half a percent.