As more than 500 aviation delegates gather for the Association’s annual General Assembly this week in Barcelona, these results are a modest but welcome sign of gradual recovery from the global financial crisis. However, the cost of meeting the unlimited liability for meals and accommodation of passengers required by Regulation 261/2004 during the volcanic ash crisis, in addition to the loss of revenue from cancelled flights, has led to significant losses for airlines in certain parts of Europe.

Addressing Airline Presidents and the media this morning, Mike Ambrose, director general said: “The fall-out from the eruption was not just ash but severe cash difficulties for many airlines, worsening the already difficult position resulting from 2008 and 2009. Politicians and regulators promised assistance to airlines but virtually none has been forthcoming.”

During the same period, capacity has remained static with zero growth in seats. Average passenger load factors overall have remained stable at 64% but again the impact of the volcano has artificially reduced this figure (load factor improved by 1-2% in every month except in April).