Holiday operator Thomas Cook Group has revealed that air travel disruption caused by the Icelandic volcanic ash cloud has cost it an estimated £70m.

The company confirmed the extent of the financial impact of European airspace closures in its results for the half-year to 31 March, which reported a 5 per cent fall in revenue. Compared with the same period last year, losses before tax have been reduced by 18.4 per cent to £252.2m, while net debt has been cut by 5.2 per cent to £951.9m.

Thomas Cook Group chief executive Manny Fontenla-Novoa said: "Our first half results demonstrate a solid operating result and strong cash flow performance. Our flexible capacity model has enabled us to adjust to lower demand in winter while planning for more resilient demand this summer. "While we are faced with a backdrop of increasing economic uncertainty, our flexible business model and the importance of the holiday to the consumer stands us in good stead."