Flight disruption at Heathrow's new £4.3bn Terminal 5 continued for a fifth day yesterday, with 54 flights grounded as analysts forecast the disruption is likely to cost British Airways up to £50m.

Although the airline said most baggage-handling problems had been resolved, the flight disruption will continue over the next two days.

Today and tomorrow, 100 of the 784 flights scheduled to and from T5 will be cancelled - 50 on each day.

Aviation Minister Jim Fitzpatrick told the Commons the continuing flight cancella-tions and baggage problems was a blow to national pride and added that it was expected to take a week to return a backlog of 28,000 bags from Heathrow's Terminal 5 to their owners. Many bags have been sent to Scotland and Manchester to be processed.

Nearly 250 flights have been cancelled since Thursday's opening of the showcase terminal, with thousands of bags stranded in its vast underbelly following problems with the baggage system.

Andrew Fitchie, of stockbrokers Collins Stewart, said the chaos was likely to cost BA £20m-£50m, while Citibank analysts were more conservative. "Based on a daily revenue of £23m and disruption costs of £100 to £200 per passenger, we estimate the earnings impact so far to be £15m to £25m," they said.

Mr Fitzpatrick acknowledged that the much-heralded opening of the terminal had failed to end so-called "Heathrow hassle" for travellers passing through Europe's busiest airport, Individual airport staff had been "devastated" by what had gone wrong, and passengers should receive the compensation they were entitled to by law at the "very least", Mr Fitzpatrick said.

Theresa Villiers, transport spokeswoman for the Conservatives, said customers had been badly let down. "Yet again the state of Heathrow is a national embarrassment," she said.

BA chief executive Willie Walsh said the airline would "not rest until our service has been restored to the high standard customers rightly expect".

The fiasco has prompted calls from the Conservatives for an inquiry into the "chaos and confusion", with Shadow Home Secretary David Davis calling the situation "a dreadful national embarrassment".

A BA spokesman said the company would not be putting anyone forward for comment yesterday because "there's not very much to say as nothing's changed".

Last night, Angus MacNeil, SNP transport spokesman at Westminster, said: "It is particularly unacceptable that passengers travelling to and from Scotland are being disproportionately hit by this chaos.

"As well as the disruption this has caused for individuals, many businesses in Scotland are reliant on air connections with London and the south and both BA and BAA must get a grip."