Airlines scramble to minimise losses as Bali volcano costs grow

Analyst say airlines could be incurring a combined $5-mn loss of revenue per day; AirAsia to redeploy Bali capacity, others offer alternative trip destinations

As a shutdown of Bali's airport is extended due to volcanic ash, airlines bracing for millions of dollars of lost revenue per day are scrambling to minimise damage by offering travel to other destinations and alternative transport off the island.

The airport on the Indonesian tourist island was closed for a second day on Tuesday because of ash from the eruption of the Mount Agung volcano, which has already disrupted several hundred flights and tens of thousands of passengers.

With no immediate sign of the eruption ending anytime soon, industry experts say airlines may consider making longer-term flight frequency adjustments to Bali