SINGAPORE Airlines (SIA) could be losing as much as $10 million a day because of airport closures in Europe, according to estimations by aviation analysts.
A key carrier operating about 25 flights a day in the Asia-Europe air travel market, SIA has had to cancel flights since Thursday to and from destinations including London and Paris after a giant ash cloud made much of Europe's airspace unusable.
Mr Shukor Yusof of Standard & Poor's Equity Research said: 'A conservative estimate is $5 million to $10 million loss a day for SIA.
'Aircraft sitting on the tarmac instead of being in the air is revenue down the drain for the airline.'
The airport closures also mean SIA is not taking new bookings for now, which has an impact on revenue as well, and quite a big one, he said, given that the airline operates its superjumbo Airbus 380 aircraft to London, Paris and Zurich, some of its most popular routes.
SIA is also paying for hotel accommodation and meals for transit passengers stuck in Singapore.
Strait times 21/4/2010
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