Channel Tunnel operator Eurotunnel said today that intense competition from low-cost airlines contributed to a 4% fall in first quarter operating revenues.
The group, whose previous board was ousted by rebel shareholders at its annual meeting earlier this month, posted an 8% fall in revenues from its shuttle business due to lower prices and a fall in the number of passenger vehicles carried.
The latest decline in revenues comes as the 2006 deadline for Eurotunnel to start repaying its £6.4 billion debt mountain draws closer.
Eurotunnel said the number of cars carried on its passenger shuttle routes fell by 13% compared with the first quarter of 2003, when it was boosted by day trip price promotions. Competition from low-cost airlines also affected the market.
Just over 421,000 cars were carried in the first quarter, against 484,654 in the same period last year. The number of coaches carried fell by 17% to 11,867 - reducing the group's market share by four points to 38%.
Eurotunnel said scheduled coach services were 'significantly' reduced due to competition from low-cost airlines.
Although the number of trucks carried increased by 7% to just over 326,000, total revenues were down 8% at constant exchange rates, mainly because of a reduction in prices.
Eurotunnel added that revenues generated from services not operated by the company - including Eurostar and rail freight - rose by 2% to £57.5m.
The number of Eurostar passengers travelling through the Channel Tunnel in the first quarter of 2004 increased by 19% compared with the first quarter of 2003, continuing the strong growth achieved since the opening of the first section of
the UK high-speed rail link.
