17,000 flights were expected to be canceled on Friday due to the dangers posed for a second day by volcanic ash from Iceland

A huge ash cloud from an Icelandic volcano spread out across Europe on Friday causing air travel chaos on a scale not seen since the September 11 attacks.About 17,000 flights were expected to be canceled on Friday due to the dangers posed for a second day by volcanic ash from Iceland, aviation officials said. Airports in Britain, France, Germany, and across Europe were closed until at least Saturday.”I would think Europe was probably experiencing its greatest disruption to air travel since 9/11,” said a spokesman for the Civil Aviation Authority, Britain’s aviation regulator.”In terms of closure of airspace, this is worse than after 9/11. The disruption is probably larger than anything we’ve probably seen.”

Following the September 11, 2001 attacks on Washington and New York, U.S. airspace was closed for three days and European airlines were forced to halt all transatlantic services.

Vulcanologists say the ash could cause problems to air traffic for up to 6 months if the eruption continues, but even if it is short-lived the financial impact on airlines could be significant.The fallout hit airlines’ shares on Friday with Lufthansa, British Airways, Air Berlin, Air France-KLM, Iberia and Ryanair down between 0.8 and 2.2 percent.The International Air Transport Association said only days ago that airlines were just coming out of recession.

“LIMITED COMMERCIAL SIGNIFICANCE”

The flight cancellations would cost carriers such as British Airways and Lufthansa about 10 million pounds ($16.04 million) a day, transport analyst Douglas McNeill said.

“To lose that sum of money isn’t a very pleasant experience but it’s of limited commercial significance as well,” he told BBC TV. “A couple of days like this won’t matter too much. If it goes on for weeks, that’s a different story.”The volcano began erupting on Wednesday for the second time in a month from below the Eyjafjallajokull glacier, hurling a plume of ash 6 to 11 km (4 to 7 miles) into the atmosphere.Officials said it was still spewing magma and although the eruption could abate in the coming days, ash would continue drifting into the skies of Europe.

Volcanic ash contains tiny particles of glass and pulverized rock that can damage engines and airframes.

In 1982 a British Airways jumbo jet lost power in all its engines when it flew into an ash cloud over Indonesia, gliding toward the ground before it was able to restart its engines.The incident prompted the aviation industry to rethink the way it prepared for ash clouds.

Of the 28,000 flights that usually travel through European airspace on an average day, European aviation control agency Eurocontrol said it expected only 11,000 to operate on Friday while only about a third of transatlantic flights were arriving.The British Meteorological Office showed the cloud drifting south and west over Europe. Eurocontrol warned problems would continue for at least another 24 hours and an aviation expert at the World Meteorological Organization said it was impossible to say when flights would resume.”We can only predict the time that flights will resume after the eruption has stopped, but for as long as the eruption is still going on and still leading to a significant eruption, we cannot say,” said Scylla Sillayo, a senior official in the WMO’s aeronautical meteorology unit.

AIRSPACE CLOSED

Britain’s air traffic control body said all English airspace would be closed until 8 p.m. EDT on Friday although certain flights from Northern Ireland and Scottish airports were being allowed to take off until 1800 GMT.”When the experts give us the all-clear we’ll get the operation back up and running,” Paul Haskins, head of safety at National Air Traffic Service, told BBC radio.

There were no flights from London’s Heathrow, Europe’s busiest airport, which handles some 180,000 passengers a day, while officials at Germany’s Frankfurt airport, Europe’s second busiest, said flights would be suspended from 2 a.m. EDT.Around 2,000 people slept overnight at Amsterdam’s Schiphol Airport, a spokeswoman said, adding they did not expect airspace in the Netherlands to reopen soon.

Eurocontrol said airspace was closed over Belgium, Denmark, Sweden, Norway, Finland, Estonia, the north of the Czech Republic, northern France including all Paris airports, and at airports in northern Germany, Austria and parts of Poland.

Polish officials said if the disruption continued, it might force a delay in Sunday’s funeral for President Lech Kaczynski and his wife who were killed in a plane crash last Saturday.Airlines across Asia and the Middle East have also canceled or delayed flights to most European destinations.

However, as the ash plume drifted south over Europe, Irish officials said most of the airspace over Ireland had reopened.The air problems have proved a boon for rail companies. All 58 Eurostar trains between Britain and Europe were operating full, carrying some 46,500 passengers, and a spokeswoman said they would consider adding services if problems persisted.(Reuters)

Global airlines are undergoing a surprisingly strong recovery with Asian and Latin American carriers leading the way

GENEVA Global airlines are undergoing a surprisingly strong recovery with Asian and Latin American carriers leading the way, the leading industry group said Thursday as it halved its loss forecast for 2010 to $2.8 billion.The International Air Transport Association said carriers began bouncing back late last year, and have continued to see stronger demand after posting record losses during the global economic crisis. The group also lowered its 2009 loss estimate to $9.4 billion from $11 billion because of the year-end rally.”We are starting to see some blue skies ahead of us,” said IATA chief executive Giovanni Bisignani.The group, which represents 240 airline companies worldwide, had predicted in December that 2010 losses would total $5.6 billion because of the “extraordinarily low” yields airlines are generating – the average price someone pays to fly one mile.

Yields are now expected to improve 2 percent for passenger planes, and 3.1 percent for cargo traffic this year, despite a glut of planes on the market and lower corporate travel budgets. Both key statistics dived 14 percent in 2009.Passenger demand should grow 5.6 percent for the year, while cargo demand could jump 12 percent, IATA added. It said strong growth in Asia and Latin America was offsetting lagging demand in Europe and the United States.”We are seeing a definite two-speed industry,” Bisignani told reporters. He noted that American and European travelers may take a longer time to return to higher-priced business class seats for short-haul flights, and said markets in their regions continued to contract.

European carriers are expected to post a $2.2 billion loss, the largest in the world, while North American airlines could lose $1.8 billion because of a jobless recovery and poor consumer confidence, the group said. By contrast, Asian-Pacific companies could make $2.7 billion and Latin American carriers another $800 million.Bisignani said 2010 represents the halfway point in a recovery effort that could take three years – even if that still doesn’t mean profits. Airlines should generate $44 billion in revenues more than last year, but that is still be $43 billion below the industry’s 2008 peak, he said.IATA warned, however, that higher fuel costs would hamper any industrywide rebound. It is now gauging an average oil price of $79 a barrel for the year, meaning $132 billion in costs for carriers. That’s over a quarter of all operating costs.

“Oil is a wild card,” Bisignani conceded.Speaking on industry developments, he noted over 30 airlines were knocked out of business since the crisis began and that carriers have lost nearly $50 billion in the last decade. They now hold over $200 billion in debts.”This is not the time for increases in salaries or prices for services,” Bisignani said, without mentioning specifically Lufthansa’s strike last month or similar action threatened at British Airways.”It’s certainly not the time for strikes,” he said. “All the partners need to work together to get out of these red numbers.”(AP)