Slow progress has been made in opening European airspace after the cancellation of many flights because of the volcanic ash cloud and disruptions will continue this week, the European Union said on Tuesday.

A spokeswoman for the executive European Commission said there had been more flights out of Paris and Amsterdam and more domestic flights in Italy on Tuesday.

'We are very pleased to see more flights are taking place since this morning,' spokeswoman Helen Kearns told a news briefing. 'We do see progress, even if it's slow progress.”

EU member states agreed on Monday to reduce the size of the no-fly zone around the volcano in Iceland from 0600 GMT under pressure from airlines losing an estimated $250 million a day.

'We know there are still a lot of problems for passengers on the ground,' Kearns said. 'We are faced with an unprecedented crisis. The disruption will continue over the week.'

She said airlines were not in a position to assess the economic impact yet but added: 'We have no new applications for state aid from any member state governments.” – Reuters