The Commission for Aviation Regulation has said there is scope for a review of EU legislation allowing passengers claim reimbursements from airlines.
Today Ryanair reversed its initial position and said it would reimburse passengers affected with reasonable receipted expenses.
Airlines all over Europe face a huge financial bill as they prepare to reimburse passengers stranded after flights were grounded last week.
Ryanair said today that its CEO Michael O'Leary 'got it wrong' when he said the airline would only refund passengers' expenses to the value of their air ticket.
Mr O'Leary said the regulations obliging airlines to reimburse passengers are absurd and discriminatory towards Europe's airlines.
He said it is unfair that airlines are required to meet potentially unlimited expenses when EU Governments impose a blanket ban on flights.
This afternoon the airlines received support from a somewhat unlikely source, the Commission for Aviation Regulation. Patricia Barton of the Commission conceded that there is scope for a review of existing regulations.
She said however that law is the law and airlines can not opt out of legislation when it suits. Passengers intending to claim expenses incurred as a result of the travel disruption are being advised to contact the Commission for Aviation Regulation.
Meanwhile, Ryanair said today that extra staff have been drafted in to deal with the expenses claims.
Passengers are asked to send in copies of their receipts when they return home. It is hoped that they will be re-funded within a number of weeks.
Airlines are putting on extra flights today to try to clear the backlog of passengers stranded by the volcanic ash cloud, as schedules begin to return to normal.
Aer Lingus has confirmed that all its flights between Ireland and Britain, Europe and the US are scheduled to operate today.
Ryanair has said all its flights in northern Europe will resume this morning, with the exception of flights between Ireland and the Britain, which will resume tomorrow.
Meanwhile, it emerged today that during the period flights were grounded, a record 72,000 passengers travelled on ferries through Dublin Port.
