Finnish flagship carrier Finnair will compensate passengers whose flights were cancelled due to volcanic ash from Iceland this spring, according to a statement released by the company Friday.

Finnair's flights were cancelled for days due to the ash cloud from Iceland in April. The week-long grounding of all planes due to the volcanic ash cloud caused Finnair losses of more than 20 million euros (25 million U.S. dollars). The company has received around 5,000 claims for compensation.

The agreement by Finnair, the Finnish Consumer Agency and the Transport Safety Agency outlined the principles of compensation practice in those cases.

Under the agreement, Finnair will compensate passengers for expenses such as hotel costs, meals, telephone calls and airport transport. They will also be reimbursed for travel by train, bus or ship to return home.