BC Ferries has reported a whopping $62 million net loss in their first-quarter report released Thursday.
The fiscal report outlines the company’s results for three months, ending June 30, citing the impacts of COVID-19 as the main reason for the substantial losses.
BC Ferries reported $12.2 million net earnings in the same time period in 2019.
In a statement, the company revealed that revenue for the quarter ended June 30, 2020, at $137.4 million, was down $109 million year-over-year. This impact on earnings was partially offset by reductions in operating expenses of $36.7 million compared to the same quarter of the prior year.
As part of their response to the pandemic, the company has deferred capital expenditures and worked with the province to reduce sailings to match the significant drop in traffic.
“We made prudent decisions to remove costs for the health of the ferry system. This is decisive action to safeguard the coastal ferry service for the long term while continuing to provide essential services to customers and communities,” said Mark Collins, BC Ferries’ President and CEO.
“We have been bringing back service capacity to coastal communities ahead of gradually increasing demand.”
Ferry traffic at the start of the pandemic dropped by 75 to 80 per cent, but with the easing of travel restrictions, bounced back to about 35 per cent of normal by the end of June.
Earlier this month, BC Ferries became eligible to receive part of a $1 billion fund to keep the company afloat after months of incurring pandemic-induced losses.
To determine funding allocation, a task force is being formed with representatives from the provincial government, the BC Ferry Authority board and BC Ferries Services Inc. board.
The $1 billion provincial fund, to be matched by a federal fund through a 50/50 cost-sharing program, has been allocated to support the provision of BC Ferries, BC Transit and TransLink services after these transportation industries took a hit due to travel restrictions amid COVID-19.
The details of the agreement and the amount of funds are yet to be determined.
