Ash crisis costs six million pounds a day: TUI Travel

Ash crisis costs six million pounds a day: TUI Travel

London: Europe’s largest tourism operator TUI Travel said on Monday said that the disruption caused by Icelandic volcanic ash had so far cost the group about £20 million (€22.6 million, $30.5 million).

The British company, which owns Airtours, First Choice and Thomson, added that daily costs were forecast to run at between five million and six million pounds as flights stay grounded.

“For the group, this is a period of relatively low holiday activity, but the disruption to our programmes will still have a financial impact," TUI Travel said in a statement to the London Stock Exchange.

“Currently, the estimated cumulative cost to the group, up to and including 18 April 2010, is circa £20 million.

“Estimated daily costs thereafter will run at approximately £5-6 million."

TUI Travel said that by Sunday, about 100,000 of its customers had been unable to return home from holiday.

“The welfare of our customers is paramount and the group is providing appropriate assistance to all those in resort whose return home has been delayed.

“In the UK, of those customers who were due to go on holiday and whose flights have been cancelled, around 90% are choosing to re-book their holidays for a later date," the travel company added.