AIR passengers in Yorkshire and the Humber have been braced for further delays after warnings that a "new ash cloud" was spreading towards the UK as the volcano eruption in Iceland "strengthened".

Air traffic control company Nats said the "situation is variable". But it said airspace over England, including Leeds Bradford International Airport, Humberside Airport and Robin Hood Airport Doncaster Sheffield, should be available from 1pm, although not including the main London airports.

Nats said in an update shortly before 3am on Tuesday: "Since our last statement at 9pm yesterday, the volcano eruption in Iceland has strengthened and a new ash cloud is spreading south and east towards the UK.

"This demonstrates the dynamic and rapidly changing conditions in which we are working. Latest information from the Met Office shows that the situation is variable.

Nats said it would provide further updates at around 9am on Tuesday.

While travel organisations warned that it would be some time before travel and airports were back to normal, airlines were counting the cost of the disruption, which has seen a shutdown of UK airports since the end of last week.

BA said the flight ban had cost it around £15 million to £20 million a day. Willie Walsh, BA chief executive, questioned the necessity of the hitherto "blanket ban" on flights, also said that European carriers had asked the EU and national governments for financial compensation.

The British Air Transport Association, with signatories and support from all major UK airlines, wrote to Transport Secretary Lord Adonis asking the Government "to commit to standing behind the industry financially at this very difficult time".

British Airways announced it cancelled all short-haul flights today based on the latest information about the volcanic ash cloud. The airline said it hoped to run long-haul flights scheduled to depart after 4pm, depending on a "full and permanent" opening of airspace.

EasyJet said all its flights to and from northern Europe including the UK were cancelled until 5pm, but it would continue to operate routes in southern Europe.