The Icelandic volcanic ash cloud caused havoc for the UK last month as it forced the closure of Europe’s aerospace for six and a half days, leaving thousands of people abandoned in airports across the globe. According to Schroders aviation accounts for 0.53 per cent of GDP in Britain. Since flying is universally believed to be the safest and most reliable mode of international transport, the impact of the plume has spelt disaster for airports and airlines, as public confidence has diminished. Experts are claiming that the financial impact of the erupting Eyjafyoll on the UK economy will be more than that of the aftermath of 9/11.                                                                        

Flights in and out of England’s airports were suspended as the Air Traffic Control Service imposed a restriction on all non emergency flights from UK airports to keep in line with international policy.                                    

The Airport Operators Association estimated the closure of UK airspace cost airports across the country £80m over the six and a half days period. All of BAA’s airports including Heathrow, Stansted and Edinburgh had been closed from midday on April 15 until April 20. In a trading statement, the company stated it lost up to £6m a day across all its airports.                                             

Manchester Airport grounded all planes for 6 days. Paul Hadfield, an airport spokesman said: “The crisis had a negative effect and we lost £4.2m in total over that period.” Hadfield also revealed how the airport made plans to limit the impact of future natural disasters: “We have made a deal with Liverpool Airport so that if it were to close, Manchester would not, so people have the option to get to their destination.”       

The crisis had also caused severe disruption to all airlines running across the UK. British Airways reported a loss of £130m and airlines across the board faced difficulties as bmi did not resume all UK flights until May 6. Phil Sheppard, bmi press officer said: “We did cancel a lot of our flights, especially during the first phase where all our plans were grounded for three days”. bmi refused to comment on financial loss, but hinted that the crisis had a knock on effect. The impact of the ash plume continues as Sheppard reports they were still seeing a fall in their bookings as customers are still unsure whether flying is still risk-free.

Hotels rely on tourists, travelers and businesspeople to make up the majority of their income. The ash plume that halted Europe’s airspace activity meant hotels across London suffered a mass of cancellations. Many hotels have lost up to 50 per cent of their lucrative business travel income. Vincent Madden, general manager of the 605-room Sofitel at Heathrow Terminal Five told the Telegraph that loss as a result of cancelled bookings ran to "hundreds of thousands" of pounds.                               

However it seems losses in this sector have concentrated within the luxury end of hotels favoured by businessmen. Cheaper priced hotels have seen a rise, especially those located close to airports.          

When a passenger hears that their flight has been cancelled, a safe bed to sleep on is often the first thing that enters the panic-stricken mind. With double bed rooms starting at £55 a night, it is understandable why the Sheraton Skyline Hotel near Heathrow saw a steep rise in bookings.

Katherine Gordon, director of sales and marketing said the hotel “had a great volume of stranded guests and new arrivals and the hotel was very busy. While we received cancellations from guests, this was outweighed by stranded guests extending their stays or people at Heathrow seeking last minute accommodation options”.                                         

The crisis has allegedly increased the popularity of UK ‘staycations’, with a high number of residents staying put instead of running the risk of being disappointed at the check-in desks.          

Michelle Emmott, manager of Woodpeckers Cottage in Scarborough noted a significant increase in bookings since the closure of Europe’s airspace. Emmott said: “We had so many more bookings than usual this time of year, with most of our visitors saying they’ve decided to holiday here instead of going abroad because of all the problems.” The cottage has seen their bookings double as a result, and will not be the only bed and breakfast which will benefit this summer.

Surprisingly, there have been a number of areas of the UK economy which saw an increase in trade and profits as a result of the volcanic ash.          

Brittany Ferries saw a significant rise in bookings and carried 1,600 extra passengers during the initial weekend which is four times the usual number. A spokesman for the company stated the most popular route for them was from Spain back to the UK, as UK citizens were desperate to get back to their homes from tragically ending holidays.                                                       

The Eurostar saw a strong demand on seats coming back into the UK and the company added 63 additional train times to their schedule. Leslie Ritallack, spokesperson said: “Because we are on an island, it is very important that we find ways to get passengers out and back into the country. We definitely saw a huge rise in passengers; over the entire time of the crisis we carried 100,000 more people than were booked to travel.”  Based on the average ticket price of £89, this would estimate additional revenue of around £8.9m.

So there were both winners and losers of the Eyjafyoll ash plight. The knock on effect is only emerging now; the current disaster is shaping the mindset of people so they avoid anything like this again. With a new plume on the horizon, panic and uncertainty will once again prevail and is set to make many more UK businesses suffer or prosper. This may spell further losses for airports and airlines towards the summer holidays as UK citizens look to alternative, more reliable methods of transport.