Business & Investment

Channel Tunnel operator Getlink By Reuters’ long-term travel suspension deepens net losses

© Reuters. File Photo: The Channel Tunnel operator Getlink (formerly Eurotunnel) logo will be seen at the 2018 Annual Financial Presentation in Paris, France, on February 21, 2019. REUTERS / Charles Platiau

(Reuters)-The operator of the Channel Tunnel deepened its net loss in the first half of 2021 as the pandemic’s increased travel restrictions and the implementation of new Brexit border controls hit traffic.

Getlink, which operates a submarine rail tunnel between France and the United Kingdom, posted a net loss of € 123 million ($ 145 million) on Thursday, compared to a loss of € 79 million in the same period in 2020. did.

The number of passengers crossing the Eurotunnel on the Eurostar train on the shuttle plummeted earlier this year as the government increased travel restrictions in an attempt to control the spread of more contagious variants of the coronavirus.

The number of logistics trucks also declined, although traffic increased again in the second quarter as companies stockpiled prior to the UK’s withdrawal from the European Union.

Getlink’s revenue and core profits fell 12% and 19%, respectively, both above expectations of analysts polled by the company, but their cash positions hit new highs against the backdrop of strict cost controls. Did.

“In this context, I would call our results satisfactory,” Getlink CEO Yann Leriche told reporters, and Getlink was previously manual to make crossings more efficient. He added that he was investing in the digitization of border control.

“We are preparing for increased traffic,” he said. “This was what I saw last year and this year as well. As soon as travel restrictions are relaxed, people make a lot of reservations with us.”

However, the group said it could not provide financial guidance while the government did not provide a stable time frame for returning to cross-border travel.

To contain the fourth coronavirus wave, the French government has announced strict new measures, including requiring a health pass for long-distance trains, the UK extended quarantine rules for travelers from France last week. Did.

($ 1 = 0.8480 euros)

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Channel Tunnel operator Getlink By Reuters’ long-term travel suspension deepens net losses

https://www.investing.com/news/stock-market-news/extended-travel-hiatus-deepens-net-loss-for-channel-tunnel-operator-getlink-2564861 Channel Tunnel operator Getlink By Reuters’ long-term travel suspension deepens net losses

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