By Marcus Leach

Amid fresh fears of mass disruption to flights due to another ash cloud Europe's leading airlines have seen share prices drop.

Both Easyjet and International Consolidated Airlines have already seen a drop of nearly 5%, with Air France KLM down by 4.5%.

Ash from the Grimsvotn volcano is starting to reach Scotland, and expected to drift south over the rest of the UK, causing flights to and from Scotland to be cancelled already.

Shares in Ryanair were also hit, falling 6.2%, but this was in part due to the budget airline's warning that it faced a tough winter ahead because of rising fuel costs.

However, Ryanair have dismissed orders to cancel their flights to and from three Scottish airports.

Icelandic air traffic control have created a no-fly zone around the Grimsvotn, with all domestic flights already cancelled. The country's main international airport, Keflavik airport near the capital Reykjavik, has been closed.