European airlines finances were improving before the Ash Attack

Prior to the Ash Attack, European aviation was showing some signs of financial recovery, particularly in terms of unit revenues, thanks to continued capacity restraint and some glimmers of economic improvement. But the financial impact of lost revenue and costs incurred caring for displaced passengers, crew and aircraft from the airspace closures could run into the billions for European carriers. Several smaller airlines are reportedly already close to the brink. For the larger airlines, the Ash Attack has come at a delicate time in the cycle.