According to BBC News, shares in major European airlines have fallen as most UK flights remain grounded for a second day because of the volcanic ash in the atmosphere.
British Airways shares dropped down by 1.1% with many investors concerned about the loss from the stoppage. Meanwhile Germany’s Airline Lufthansa was down by 2.1% and Air France-KLM shares fell by 1.7%.
“For a large network carrier like BA or Lufthansa your talking about £10m a day – but that’s of limited commercial significance” said Douglas McNeill, transport analyst, Charles Stanley Securities.
While most of the airline industries are affected by this natural disaster, other industry such as pharmacy is suffering from the disaster also. Most of the drug exports/imports are heavily reliant on air freights. If this cancellation prolongs for over a week, it will definitely affect both airline and pharmacy industries severely.
Iceland volcano eruption stirred some health concerns, especially respiratory problems. World Health Organization said that it is not sure if this will cause serious health problems, however, it has advised people to stay indoors to avoid respiratory problems. It is also reported that there are some level of sulphur dioxide in the ash.
In sum, this volcanic eruption has caused several economic problem to health problems. If this prolong for over a week, European economies, including UK, will have difficulty due to canceled air flights.