Eurotunnel profits crash to just £1.3m thanks to snow chaos

Lucy Tobin
9 Mar 2010

Eurotunnel's profit plummeted 96% last year as it felt the impact of the winter's freezing weather and a fire in 2008.

But the Channel Tunnel operator was upbeat about the future, as it is expects to cash in on the London Olympics in 2012.

The company — which manages the tunnel and carries car and coach passengers and freight lorries in its shuttle services — made a €1.4 million (£1.3 million) net profit in 2009, down from €34 million the previous year.

Revenue was hit by a slump in freight traffic — down by a fifth because of the recession — and the fire in the tunnel in September 2008 cut capacity until February.

Eurostar trains struggled to run in the wintry weather in December, when “fluffy” snow caused them to break down. Shields fitted to the trains to stop snow getting into the electrics failed.

Eurotunnel's chairman and chief executive, Jacques Gounon, said the fire, which destroyed an entire shuttle, cost €250 million, but he was optimistic.

“Passenger numbers stayed robust last year, and we hope the hauliers side will return by the end of this year,” he said. “The positive impact of the Olympics will start to kick in, and we hope economic recovery will continue.”

Gounon said he felt vindicated in avoiding price cuts last year “because the service justified the cost” but had a warning for fares: “The ferry operators are now offering crazy prices to try to attract our customers.

“However, we're not worried, they can't do it in the long term. We will not increase prices this year — the economic environment does not allow it.”

Gounon was “very cautious” about the year ahead but said: “I do believe that the hauliers are coming back, and we will have a better year than the difficult 2009.”