European airlines have taken such a massive financial hit from the effects of the ash-spewing volcano in Iceland that they may require government rescue.

Ever since the Eyjafjallajoekull volcano began erupting last Wednesday, much of Europe's commercial air service has been grounded. Hundreds of thousands of travelers have been stranded, and airlines have lost tens of millions of dollars in lost revenue.

According to BBC business editor Robert Peston, the volcano is threatening to becoming a "major business and economic disaster" -- especially for airlines.

"If [the disruption] goes on many days longer, a number of European airlines will run into financial difficulties and may need bailing out by governments -- or so I am told by senior airline figures."

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