Cross-Solent operator, Red Funnel, recorded a £24.7million loss in the first year of the pandemic (2020) despite laying off almost 40 staff.
The company, which has its headquarters located in Bugle Street, Southampton, saw its turnover fall by a staggering 42.5%, with the comapany’s losses rising from £8.494 million in 2019.
It comes as Red Funnel also recorded some of its lowest ever passenger numbers with the vehicle ferry service between East Cowes and Southampton dropping to 3% of 2019’s traffic and the Red Jet service – which was suspended for over 72 days due to low numbers – operating at 2% of the previous year’s traffic volume.
Despite a Government business interruption loan of £5 million and a Department for Transport emergency package, 38 members of staff were made redundant. Meanwhile, the amount of freight crossing the Solent remained consistent – although still dropping to 44% of the previous year’s volume.
Fran Collins, CEO of Red Funnel, said:
“As soon as the potential effects of COVID-19 became apparent in MArch 2020, immediate cost mitigation measures were put in place including a review and reduction of overhead and discretionary spending and suspension of all non-essential capital expenditure.
“Specific mitigation measures also included reviewing and amending all timetables. This led to the suspension of the Red Jet service for 72 days between April 17th and June 29th 2020; the first time that the hi-speed service had been suspended for a sustained period since introduction in May 1969.”
Despite the huge losses sustained, the company says that tourist interest is beginning to recover and an upturn is being noticed, although the number of passengers using services to commute remains low – as does routine travel.
Serves them right, they are useless. They are now bleating about not having enough staff but have you seen the requirements to apply for a job? One year’s mechanical experience required to direct cars on to a ferry or serve coffees! They still haven’t even fixed customer accounts since their “hack” a year ago as the IT staff are so incompetent. They couldn’t hold a you know what in a brewery.
Nailed on prices will sky rocket even higher than the truly ridiculous ones already in place,
If they are not running the same amount of boats, how do they expect to not make a loss?
Because the boats are only half fool !
I cannot see why people are bleating about the prices. Red Funnel constantly send offers to Island residents. what more do you want. I have never come across an Island where there is so much negativity. Nobody forces you to live here.
Cheaper prices is what we want, not a few crumbs from the little red book.