British Airways, TUI Travel and Thomas Cook all lost around 4% at one point, but narrowed their falls amid news that flights in Scotland and northern England will resume on Tuesday.
The FTSE 100 Index shed 16.1 points to 5727.9 by the close in the latest falls after its 1.4% plummet on Friday following shock fraud charges against investment bank Goldman Sachs from the US regulator.
Wall Street's Dow Jones Industrial Average was almost flat in early trading as better-than-expected profits from Citigroup helped to soothe nerves from the Goldman scandal.
In currency news, the pound was largely flat against the dollar at 1.52 and against the euro at 1.13 amid ongoing uncertainty surrounding the General Election and the possibility of a hung Parliament.
Meanwhile, the continuing travel disruption caused by the Icelandic volcano eruption caused worries over lower demand for jet fuel, helping to send oil prices down to 81 US dollars a barrel.
In London, British Airways ended the day having pared earlier losses, with shares falling 3.3p at 231.7p - or 1.4% - after it said that lost passenger and freight revenue, as well as costs incurred in supporting passengers, amounted to between £15 million and £20 million a day.
TUI Travel saw a similar effect, ending 3.5p down at 288.2p, 1.2%, after it said the disruption cost it around £20 million so far and a further £5 million a day while the problems persist, and Thomas Cook said lost income and additional costs meant it was losing around £7 million a day. Shares declined 1.6%, or 4.2p to 256.9p.
The biggest Footsie risers were Royal Bank of Scotland up 2.1p at 50.4p, Autonomy Corporation up 37p at 1777p, Lloyds Banking Group, which gained 0.7p to 65.4p and British American Tobacco up 20.5p at 2170.5p.
The biggest Footsie fallers were Aviva down 8.9p at 378.1p, Land Securities off 14p at 659.5p, Old Mutual down 2.5p at 118.1p and Vedanta Resources, which fell 55p to 2741p.
( source: Press Association)
