Profits collapse as fire, snow and recession derail Eurotunnel

Published on Tuesday 9 March 2010 20:17

PROFITS at Channel Tunnel operator Eurotunnel collapsed last year after it was hit by a fire and bad weather.

The company yesterday posted profits of 1.3 million for 2009, down from 31m the previous year.

A tunnel fire in September 2008 reduced capacity until February and the figures were also affected by the chaos which ensued when Eurostar services succumbed to the snow last December. The recession also weighed on the firm as the market for cross-Channel truck shuttling services is about 20 per cent below 2007 levels.

But the group's chairman and chief executive Jacques Gounon said the results were "proof of Eurotunnel's resilience in the face of difficulties".

"Our group has remained profitable in an unfavourable economic context," he said.

Eurotunnel generates income by charging other freight and passenger services such as Eurostar to use the Channel Tunnel, so business is hit when the tunnel is out of action.

Revenues fell 16 per cent to 518m at constant exchange rates, although the firm clamped down on costs to maintain profits in the face of a big increase in its insurance premiums following the fire.

The number of Eurostar passengers rose by 1 per cent to 9.2 million. Rail freight traffic over the year was down 12 per cent.