Channel Tunnel is a vehicle for growth in passenger numbers

Published on Monday 18 October 2010 15:16

A RECORD number of passenger vehicles were carried through the Channel Tunnel during August, driving strong growth in revenues at Eurotunnel in the last quarter.

On one day during August's peak period just under 15,000 cars, motorbikes and coaches travelled through the undersea link contributing to revenues from the group's shuttle services rising by 15 per cent to €109 million (95.2m) in the three months to 30 September.

Across the company, which also generates income by charging other freight and passenger services such as Eurostar to use the tunnel, like-for-like revenues were up 8 per cent at €181.3m.

Total revenues for the third quarter totalled €212.1m, up 27 per cent on last year, partly due to the addition of recently acquired rail freight company GB Railfreight.

The company said its passenger services had benefited from holidaymakers looking to cut costs by taking a car full of passengers through the tunnel instead of flying.

An increase in delays at airports and the lasting impact of the volcanic ash cloud had also seen it take business away from airlines.

Revenues from railway services were broadly flat at €69.5m but Eurostar, the passenger rail service between London and Paris and Brussels, did see a 3 per cent increase in passengers to 2.6 million during the quarter.

But Eurotunnel warned it still faced ending the year in the red as insurance payments linked to a major fire in 2008 continued to be blocked.

In July, the company posted a net loss of €45m for the six months to 30 June, compared with a figure of €5m a year earlier.

The Channel Tunnel link is being sold by the government in a round of privatisations with final bids to be submitted by the end of October.

Shares in Eurotunnel were unchanged yesterday at €6.25, valuing it at about €3.3bn.