The novel coronavirus drove B.C. Ferries’ net losses to $62 million for the first quarter of the 2021 fiscal year — a drop from net earnings of $12.2 million for the same months last year.
The financial news was released Thursday morning prior to the organization’s annual general meeting, held in Victoria and streamed online. There was limited attendance at the meeting due to social-distancing rules.
The losses were not a surprise. At the start of the pandemic, the company was losing more than $1 million daily. Pleas for federal government aid were answered this month and B.C. Ferries is now permitted to apply for financial aid.
But it has yet to recover to the continuing hit to its bottom line. According to Mark Collins, B.C. Ferries’ president and chief executive, the impact of the virus continues to “have a profound impact on our business.”
Revenue for the first quarter of this fiscal year was $137.4 million — a decrease of $109 million year-over-year. The first quarter covers April, May and June.
The hit to B.C. Ferries’ earning was partly offset by reducing operating expenses by $36.7 million, compared to the same quarter of the prior year, a release said.
B.C. Ferries operates through a service contract with the province. After the pandemic was declared, the company negotiated an agreement to cut back on sailings as traffic declined.
“We made prudent decisions to remove costs for the health of the ferry system,” Collins said.
“This is decisive action to safeguard the coastal ferry service for the long term, while continuing to provide essential services to customers and communities.”
Services have been gradually moving toward capacity in advance of rising demand, he said.
When the pandemic was announced, ferry traffic dropped 75 to 80 per cent across the system within days.
That has recovered to come extent now that B.C. has eased travel restrictions. By the end of June, traffic had rebounded some and was down about 35 per cent compared to last year.
In three months ending June 30, B.C. Ferries operated 18,249.5 round trips. That’s a decrease of 2,340, or 11.4 per cent, compared to the same period in 2019.
A total of 2.2 million passengers and 1.3 million vehicles were carried this past quarter, down by 61.5 per cent and 46.7 per cent, respectively, compared to the same quarter in the prior year, the release said.
Because of the virus, B.C. Ferries has put off some major capital expenditures. It says it will continue to reduce discretionary spending while running a sustainable, safe and reliable service.
“While COVID-19 continues to have a profound impact on our business, I want to express my deep appreciation to our frontline staff who came to work every day in the depths of the pandemic to provide lifeline service to coastal communities,” Collins said.
