Confident outlook as plans for Amsterdam service gather pace
Eurostar today reported signs of recovery in the trading environment with passenger numbers increasing year-on-year over the last eight weeks. This uplift follows a challenging period in which demand was dampened by the terrorist attack in Nice at the end of July.
With the recent fall in sterling, the business also saw an increase in the number of passengers coming from France to the UK during the October half term holidays, with traffic up 18% year-on-year during that period.
Overall, passenger numbers in the third quarter 2016 were down 10% compared to last year (2.6 million Q3 2016: 2.9 million 2015) and sales revenues were 8% lower year-on-year (£184 million Q3 2016: £200 million Q3 2015).
Nicolas Petrovic, Chief Executive of Eurostar, said: “After a softening in demand over the summer, we saw an increase in travel from the continent to London during the half term holiday. With the weakening of the pound, the UK is proving to be an attractive destination. The outlook to the end of the year is encouraging with many travellers taking day trips to London to do their Christmas shopping.”
New direct service to Amsterdam Looking ahead to next year, plans for the new direct route to Amsterdam are progressing well. The first phase of testing of the new Eurostar e320 train on the Dutch network was completed earlier this year and the next set of tests are scheduled for early 2017.
The London-Amsterdam route is one of the largest international airline markets in Europe attracting over 3 million business and leisure passengers every year. With a journey time of under four hours, Eurostar’s fast, comfortable, point-to-point service will greatly enhance the links between the UK and the continent, transforming travel between these important financial and tourist hubs.
Nicolas Petrovic continued: “Over the coming months, we are making a major investment in our fleet, our service and our stations to equip our business for expansion. The launch of our Amsterdam route at the end of next year marks a key milestone and represents a significant growth opportunity for the future.”
With a lead-in price from just £29 one way, no additional charges for luggage or seats and a direct link between city centres, passengers can benefit from a highly competitive alternative to travelling by plane. For more information visit www.eurostar.com
Sales revenue is the value of ticket bookings made during the period. This revenue is only recognised in the income statement at the date on which the passenger actually travels.
Passenger volumes reflect the number of travellers carried by Eurostar in the period.
Eurostar is the high-speed train service linking St Pancras International, Ebbsfleet International, Ashford International, Paris, Brussels, Lille, Calais, Disneyland Resort Paris, Lyon, Avignon, Marseille and the French Alps.
Eurostar was established in 1994 as a partnership between three railway companies: SNCF, SNCB and LCR (London and Continental Railways). On 1 September 2010, Eurostar became a single, unified corporate entity owned by three shareholders: SNCF, SNCB and LCR. LCR’s holding was transferred to the Treasury in 2014, and sold by the UK government to a consortium comprising Caisse de Depot et Placement du Quebec (CDPQ) and Hermes Infrastructure on 28th May 2015.
Eurostar and Eurotunnel are entirely separate companies. Eurostar operates high-speed passenger trains, while Eurotunnel operates vehicle shuttle services and the Channel Tunnel itself. Eurostar is Eurotunnel’s biggest customer.
Eurostar International Limited is an Appointed Representative of Mondial Assistance(UK) Limited (trading as Allianz Global Assistance) which is authorised
and regulated by the Financial Conduct Authority (FCA). Mondial Assistance (UK) Limited FCA registration number is 311909. FCA authorisation can be checked
on the FCA register at http://www.fsa.gov.uk/register