European airlines ask for aid as volcano losses pass $1B

NEW YORK — The economic fallout from a volcanic eruption that froze travel across Europe continued to mount Monday, prompting some European airlines to ask for government financial help as losses to their industry surged past $1 billion.
The head of British Airways likened the need for help to the days after the terror attacks of Sept. 11, 2001.

"This is an unprecedented situation that is having a huge impact on customers and airlines alike," Willie Walsh, the chief executive of British Airways, said in a statement. "Compensation was paid after the closure of U.S. airspace following the terrorist events of 9/11, and clearly the impact of the current situation is more considerable."

The global airline industry, just beginning to climb back from a decade of financial losses, has lost at least $200 million a day since the volcanic ash cloud from Iceland forced cancellation of more than 80,000 flights in 23 European countries. European airline stock prices fell in the wake of the crisis.

U.S. airlines, which have probably suffered a revenue hit approaching $250 million, have so far not made a similar request for government aid. And only U.S. airlines with international routes have seen their stocks affected.