This week, TUI Travel and Easyjet announced their costs from the volcano’s eruption with losses of £78.7 from Easyjet, which [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> The global financial crisis hurt the travel industry enough in 2010, but the volcanic ash cloud that caused most European airlines to close for five days during April was symbolically simply an additional catalyst for disaster.

This week, TUI Travel and Easyjet announced their costs from the volcano’s eruption with losses of £78.7 from Easyjet, which is lower than expected although the carrier did suffer as it was forced to cancel around 6,500 flights.  Up until the disaster, the company was expecting profits this year to reach almost £200m but now full year profits are expected to reach a max of £150m.

Easyjet chief executive, Andy Harrison, stated that EasyJet will continue to turn profit in 2010 even though it faced the recession, terrible snowfalls, and the volcanic closures, which is quite a surprise and a testament to the company.

On the other hand, TUI Travel reported that it was forced to cancel the holiday plans of around 175,000 people, forcing them to issue refunds to around 180,000 customers costing them a total of about £90m.  At the same time, the company already had reported losses during the first half of 2010, making the volcano especially hurtful.

However, TUI Travel still performed better than most analysts predicted and the company believes that summer holidays will remain unaffected with their current trading strong before the eruption and expected to regain its balance once the debris and threat is finally over.

Chief executive of TUI Travel, Peter Long, stated that he expects the company to get their momentum back in the latter part of 2010.

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