Airlines affected by the volcanic ash cloud across Australia and New Zealand from Chile’s Puyehue Cordon Caulle volcano are unlikely to have business interruption policies in place to cover the event, according to one aviation broker.

The broker, who declined to be named, told insuranceNEWS.com.au that business interruption is not included in standard aviation covers.

He says it’s unlikely airlines would have arranged a specialist side cover to protect revenues from the ash cloud. Despite many airlines suffering losses as a result of an Icelandic volcano eruption in April last year, such events are rare.

If business interruption cover was in place it may be subject to a natural hazards clause. With standard wording only covering losses caused by property damage, policies would probably lack sufficient complexity to deal with the fallout from a volcanic eruption.

The volcanic ash cloud returned last week after affecting flight services in Australia and New Zealand earlier this month, causing the cancellation of more flights by Qantas, Jetstar, Virgin Australia and Tiger Airways.

Services into and out of Sydney, Melbourne and Canberra were affected, as well as some flights to Adelaide, Hobart, Perth and Brisbane, and flights to and within New Zealand.

Qantas CEO Alan Joyce said last week that disruptions from the Chilean volcano remain “a material variable” to the group’s financial result. The Qantas Group also includes Jetstar.

Mr Joyce said as of June 20, “the disruptions caused by volcanic ash were estimated to have cost the group $21 million”.

Qantas failed to respond by deadline when contacted by insuranceNEWS.com.au about whether any of this loss could be claimed under insurance.