GENEVA — Could the volcano hamper Europe’s shaky economic recovery? The ash cloud from Iceland’s volcanic eruption is battering airlines, with officials warning of losses akin to those after the Sept. 11 attacks.
And European tourism operators are losing business, while each new day of closed airspace is costing jobs or revenues for those dealing in perishables such as roses and cheese.
But the volcano disruption also is creating some winners, such as fully booked Scandinavian ferries, hotel owners charging $800 a night and taxi drivers pocketing $5,000 fares.
By the numbers, the situation appeared bleakest for airlines.
The International Air Transport Association claims carriers are losing more than $200 million a day, and European Union transport chief Siim Kallas said Monday that the ash plume covering much of the continent already was worse for the industry than the constriction of travel after al-Qaeda’s attacks on the U.S. in 2001.
Government bailouts may be necessary, he said, and the prospect of continued flight cancellations drove down airline shares. The Associated Press
