The Cost of a Volcano

It is being reported that the affected Airlines have lost about £1.1 billion as a result of the travel chaos and plane free skies as a consequence of the unpronounceable Icelandic volcano. The head of the International Air Transport Association calculates that at the height of the disruption, airlines were losing £260 million a day. Mr Bisignani said that the final bill to the industry included costs of providing accommodation to stranded customers, feeding them and laying on other modes of transport, such as buses to either get people home, or nearer to home.

“We’ve seen a week without revenue but that has not stopped the costs,” he said.
So, how exactly do the costs impact a business? Just how long can a business survive without any income flowing in? These are just some of the questions we explore on our Understanding Business Costs course; follow the link to read more.