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Econwatch
April 20, 2010 1:18 PM

Report: Volcano Ash Cloud Costs U.S. $650 Million

By
Alex Sundby
Topics
Economy

This aerial photo shows a plume of ash rising from the volcano in southern Iceland's Eyjafjallajokull glacier, Monday, April 19, 2010.

(Credit: AP Photo/Jon Gustafsson)

While the eruption of an Icelandic volcano appears to primarily affect airlines and passengers waiting for flights in and out of Europe to resume, the U.S. Travel Association estimates that the ash cloud produced by the eruption has cost the U.S. economy $650 million, approximately $130 million per day.

That kind of loss to the economy affects the cashflow to fund about 6,000 American jobs, the association said. Every international flight bound for the U.S. is worth an average of $450,000 in spending from travelers, which the association says pays for five jobs per flight.

"While safety must always be the primary consideration, economies, particularly those recovering from recession, cannot afford an overreaction that stifles travel completely," Roger Dow, the association's president and CEO, said in a statement.

More on Volcano Fallout: Ash and Travel Woes

Flights Go Airborne With Cheers, More Ash

To Fly or Not to Fly? That's No Easy Question

Millions of Stranded Travelers Given Hope

Volcano Spews Less Ash as Lava Boils Up

More Ash Fallout: 10 Million Roses Ruined

Volcanic Ash Puts Organ Transplants in Peril

Volcano Cloud's Impact: Some $2B and Counting

Tweet This: Get Me Home

Stranded Travelers Seek Alternate Routes

Volcanic Eruption Grinds Modern World to a Halt

Video:

Flight Safety Up in the Air

Amazing Images of Iceland Volcano

Cleaning Up the Travel Mess

Global Impact of Volcano Ash

Volcano Ash Changes Behavior

The Science of Volcanoes

Second Volcano Erupts in Iceland

Iceland Volcano is Tourist Attraction


  • Alex Sundby

    Alex Sundby is an associate news editor for CBSNews.com

Add a Comment See all 12 Comments
by Empire-George- April 21, 2010 10:46 AM EDT
Liberals do something, drive a prius, install a flourescent lightbulb, throw down a solar panel, something....because this Volcano and other volcanos release 250 tons of CO2 and pollution into the atmosphere every year, and this one costs us $650 million dollars in losses, forget what Europe lost....stop this nature made global warming, please !!!
Reply to this comment
by mljohns00 April 21, 2010 4:58 AM EDT
So, where should we send our money to compensate these people?
Reply to this comment
by Empire-George- April 21, 2010 10:49 AM EDT
by mljohns00 April 21, 2010 4:58 AM EDT
So, where should we send our money to compensate these people?
__________

these people ? those who's flights were cancelled ? those stranded in a European vacation spot ? please explain, because the volcano is on a glacier, in Iceland....the only "people" are some local farmers/Icelanders.
by STBY21 April 21, 2010 12:12 AM EDT
I wonder how much CO2 is being released into the air from this eruption. Maybe we should ban volcanos that emit too much CO2 or make the country where they are located pay for huge carbon offset credits. I bet Al Gore could make a ton of money off of that scheme too.

Quick Al, fly to Copenhagen and get back on the soapbox.
Reply to this comment
by maiingan April 20, 2010 7:29 PM EDT
If I had the writing talent, I think I'd write an imaginary news-report-from-the-past about how folks downwind from the cataclysmic eruption of Thera in the Mediterranean were complaining about its effect on their shipping.
Reply to this comment
by vkmo April 20, 2010 6:43 PM EDT
Airlines insist they won't crash
They are losing lots of cash
Flying is held up due to ash
Be easy on them, donot bash!!
Reply to this comment
by pensacola8-2009 April 20, 2010 3:55 PM EDT
650 million dollars is very small compared to a major hurricane. Hurricane Ivan in 1994 that struck Pensacola cost 4 billion dollars. Katrina in 05 was far greater than that.

The European nations are experiencing far greater distress.

In financial market news, the geographic location for the USA does give an advantage during the industrial impacts from this volcanic eruption.
Reply to this comment
by vkmo April 20, 2010 3:25 PM EDT
Airlines insist they won't crash
They are losing lots of cash
Flying is held up due to ash
Be easy on them, donot bash!!
Reply to this comment
by Empire-George- April 20, 2010 4:50 PM EDT
the volcano, the ash
the planes, lost cash
Don't fly, or you'll crash
Don't complain, or trash

How's that ?
by timdgrim April 20, 2010 2:22 PM EDT
Airline lawyers are just itching to sue Mother Nature over this. In perspective:$650 Million OR just a very few days of the cost of the Iraq and Afghanistan Occupation.
Reply to this comment
by STBY21 April 21, 2010 12:06 AM EDT
This volcanic eruption is all George Bush's fault.
by CompletelyFrustrated April 20, 2010 1:44 PM EDT
Yeah, OK What about what this has done to the economy in Europe???

this stype of report is just plain arrogant and stupid! Oh yes, we are losing money in tourist trade, the USA could care less about the saftey of those who would fly through the volcanic ash!

Screw safety we just want the money!

What about all of those who are stranded here and because of the airline policies on acts of nature, they are spending money here just to stay here. This BS tyoe of article really makes the USA look bad - greedy in fact.
Reply to this comment
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