Air capacity puts squeeze on ferries

FERRY operator Irish Continental Group said trading in the first quarter of 2005 has been challenging.

It said since the beginning of the year a 4% rise in freight volumes has been offset by a 4% drop in passengers on its ferry services.

“The tourist market into Ireland is facing perceptions of a high cost destination combined with substantially increased low fare air capacity from the UK, our principal market. In addition many new destinations are being served from the UK by low fare air carriers,” chairman John McGuckian told the company’s annual general meeting yesterday.

The company also held out the prospect of fuel surcharges for customers, saying due to the higher oil price its fuel bill would be €6 million higher than in 2004.