The volcanic eruption in Iceland yesterday is continuing to grow, with the no-fly ban now in effect until 1pm at the time of print.

In addition to seeing 700 homes evacuated, the glacier below is now melting causing serious floods. With all of Europe in its grasp, Mount Eyjafjallokull has no signs of slowing down after 2 days of activity.

Europe’s biggest airport, Heathrow, came to a stop in what’s been called the biggest air-traffic disruption since 9/11. Now airports in Norway, Sweden and Finland are following suit in what looks like a several-day standstill.

Frustrated passengers are facing line-ups, stress and cancelled travel plans, but one thing may not be facing is any compensation due to fine-print clause. In EU law, if cancellation is caused by ˜extraordinary circumstances which could not have been avoided’, the airlines aren’t liable.

This little loophole is what many major airlines are holding to, offering seats on later flights, but no monetary compensation. So while stranded passengers shell out for hotels, car rentals, phone calls and more, there may be no extra reimbursement.

Looks like the fall-out of Mount Eyjafjallokull may include more than ash.