BA: Volcanic disruption cost £90-100m

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British Airways estimates that the overall cost of the Icelandic volcanic disruption on its operations amounted to £90-100 million ($130-144 million).

Chief executive Willie Walsh, speaking during an investors' event today, said the figure included a direct cost of £25 million to cover passenger accommodation costs under European regulations.

The remaining costs arise from related effects including the loss of revenue during the six-day closure of large parts of European airspace in April.

Walsh says he believes the airline has "strong grounds" to pursue compensation for the airspace closure - describing the situation as a response to the "ash cloud that never was" - and that the airline will be able to "recover some costs" incurred.