Ferry group reaps volcanic ash benefit

VOLCANIC ash from Iceland has helped ferry group Irish Continental to achieve near flat year-on-year revenue of €75.7m and before-tax earnings of €8.0m.

Ash from the Eyjafjallajökull volcano has led huge numbers of air travellers to make advance ferry bookings. Total passenger numbers for the four months to April were up by 40,500 (10.4%) to 431,500, compared with the same four months last year.

The ash, however, is not the whole story. The group points out that, prior to the airspace closure of April 15 to 21, foot passenger numbers were already up 18% versus 2009. All told, the group saw a 49% surge in foot and coach passengers.

“The recent closures of Irish airspace have reinforced the strategic importance of sea access to the island of Ireland for both passengers and freight,” Irish Continental said in a regulatory statement yesterday. “Forward bookings for Irish Ferries have improved during recent weeks as uncertainty about the effects of volcanic ash on air travel continues.”

In the first four months of the year, group revenue was €75.7m, compared with €76.2m in the same period last year. Higher passenger and car revenue was offset by lower freight revenue. Operating costs (before depreciation and amortisation) were €67.7m versus €68.2m the previous year. This included an increase of €4.1m in fuel costs to €12.4m. Earnings before interest tax and depreciation (EBITDA) were €8m, the exact same as the €8m for the same period in 2009.

Up to May 8, Continental carried 92,500 cars, a 5.6% reduction on the same period last year.