Irish Ferries owner loses €11.2m in first half as Covid-19 hits travel

Shipping company Irish Continental Group lost €11.2 million in the first half of the year as Covid-19 restrictions hit travel.

The owner of Irish Ferries reported that revenue fell 21.6 per cent to €130.8 million for the first six months of 2020, from revenue of €166.8 million during the same period last year.

Irish Continental Group’s first-half losses compared with a €25 million pretax profit in the opening six months of 2019.

Chairman John McGuckian described the 2020 six-month period as the “most challenging encountered by the group in its 32-year history”.

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He pointed out that despite travel restrictions, Irish Continental Group continued to operate all its shipping routes, allowing vital supplies into Ireland.

Mr McGuckian noted that Covid-19 created continued uncertainty for passenger travel.

“However, we are encouraged by the recovering freight volumes since June to date,” he added.

The group warned that the UK’s final exit from the EU, due on December 31st, threatened further uncertainty, as its Irish Ferries business depended heavily on trade between the Republic and Britain.

It also criticised the Government’s requirement that visitors from Britain quarantine for 14 days on arrival here, pointing out that the British government does not demand the same of Irish visitors.

Common Travel Area

The company pointed out that the Common Travel Area, which allows free movement of people between Ireland and Britain, was a major benefit to tourism.

During the first half of 2020, Irish Continental Group ended a contract with German shipbuilder FSG for a new ferry.

In June it recouped a €33 million deposit, paid against the full €162.5 million price for the new vessel.

FSG built the WB Yeats for the Irish company in 2018. That ferry’s delivery was delayed, hitting the shipping group’s earnings for that year.

Irish Continental Group did not avail of a Government support scheme designed to keep loss-making ferry routes open during the Covid-19 crisis, as it believed it could distort the market and be open to legal challenge.

Instead it committed to continuing with loss-making routes with Government support.

However, where appropriate, it has availed of various governments' staff retention schemes across Europe.

The company said that while recent freight business remained robust in light of certain industries being shut down, the loss of peak-season travel hit passenger numbers.