UK. P&O Ferries has lost more than a million passengers this year due to strong competition from low cost airlines.
The shipping group’s shares fell by more than -10% yesterday amid gloomy third quarter figures for the period ended September from its ferry business.
Tourist traffic was worst hit, thanks to airlines slashing their prices to attract the dwindling number of holidaymakers, the strong euro and Britain’s hot summer.
A P&O spokesman said passengers planning to drive further afield to the south of France and Spain were increasingly opting for flights with car hire deals. “Low cost airlines are understandably taking some of the long distance market,” he said.
P&O’s most popular route, between Dover and Calais, saw passenger numbers fall by -9.6% to 3.1 million in the three months to September. Other routes, including Irish Sea and North Sea crossings, suffered an -8.8% fall to 1.3 million. For the year to date, P&O said total passenger traffic had fallen from 11.5 million to 10.3 million.
