Spirit of British Columbia ferry in Active Pass, as seen from a buffet room window on sister-ship Spirit of Vancouver Island.
B.C. Ferries vehicle numbers hit a record and passenger figures were the highest in two decades during the first three months of the company’s fiscal year.
However, net earnings slid to $6 million for the three months ending June 30 from $17.3 million during that same period last year.
The earnings drop is due to the 15 per cent fare reductions that kicked in April 1 on all routes other than the Metro Vancouver-Vancouver Island sailings. Fares held steady on the major routes to and from Vancouver Island.
As well, the B.C. seniors’ (age 65 and older) discount on passenger fares was reinstituted in April. That means the passenger portion of a fare is free for seniors between Monday and Thursday on most routes.
Earnings were also hit by B.C. Ferries adding additional sailings at busy times, the company said in its quarterly report released Friday.
“Traffic across the system has grown, and we are working hard to deliver the travel experience our customers expects,” said Mark Collins, Ferries’ president and chief executive officer.
“However, at some of these unprecedented traffic levels, we know that some travellers and communities are seeing some delays.”
Traffic remains heavy this quarter on major routes between Vancouver Island and the Lower Mainland during the busy summer season. Last weekend saw some passengers wait for several sailings before they could get on a vessel.
Revenues rose by 1.5 per cent to $229.7 million, from $226.2 million, in the first quarter, mainly because of the higher level of traffic, but that was partly offset by lower fares and more vehicles, Ferries said.
“With traffic levels the highest our company has ever experienced, we continue to add service where possible, resulting in higher operating expenses,” Collins aid.
Operating expenses moved up by 7.8 per cent to $209.9 million in the first quarter, from $194.7 million in the same quarter last year, thanks to higher labour and training costs and an increase in fuel consumption.
An extra 352 round trips were added to meet the higher demand. As well, schedules were adjusted for Horseshoe Bay service, and there were costs associated with bringing the Spirit of British Columbia back into service after its mid-life upgrade. The upgrade included converting the ship’s engines for dual-fuel, meaning that it can operate on liquefied natural gas.
The Spirit of British Columbia returned to service on June 6 on the Tsawwassen-Swartz Bay route. That vessel is one of four in the fleet capable of operating on LNG.
Capital costs for the first quarter total $72.8 million for projects including the Spirit-class mid-life upgrades, major overhauls and inspection on vessels, and new Island class vessels now being built.
B.C. Ferries is continuing to modernize its fleet. It has issued requests for expressions of interest for four Island-class vessels and one Salish-class vessel.
As well, direct service between Port Hardy on the north of Vancouver Island and Bella Coola on the central coast resumes Sept. 16 and runs until Oct. 11. The Northern Sea Wolf, purchased in Greece, required extensive upgrading, B.C. Ferries said.
cjwilson@timescolonist.com
