The direct sea routes to France to avoid the delays of trucking freight through Brexit Britain has held back revenues of Irish Ferries-owner ICG, while Ryanair boss Michael O’Leary has warned that European airlines face a bleak winter as Covid cases soar.
ICG — in which its chief executive Eamonn Rothwell has long held a significant stake — is one of the largest freight and passenger carriers across the Irish Sea. It has also operated a Dover-Calais service since the summer.
In its latest update, ICG highlighted the increase in business in direct sea services that shot up after the signing of the Trade and Cooperation Agreement in December that marked the exit of Britain from the EU’s single market.
Since then, hauliers say they shifted both exports and imports to sea routes to reach EU markets directly, and avoid lengthy delays at the Channel ports in Kent.
Overall, ICG posted revenues of almost €280m in the 10 months to the end of October, up 22% from the same Covid-hit period in 2020, but weighed by a fuels bill that increased by €17m. Revenues at its ferries division rose 24% to €144.5m, helped by the summer recovery in travel, but nonetheless weighed by lower volumes of roll-on, roll-off freight “as more freight customers take the longer direct route to France”.
Its container and terminal division at Dublin and Belfast was however apparently boosted by Brexit, with revenues increasing almost 21% to €146.5m in the period.
In the update, ICG said that it is on course to add two more ships to join the Isle of Inishmore on the Dover-Calais route by early next year.
Separately, Mr O’Leary at Ryanair said European airlines are in for a fraught period between now and the end of the year due to renewed Covid-19 concerns that will disrupt Christmas travel and early summer holiday bookings.
“Up until last weekend, things were going great. Volumes were back running at about 100% of our pre-Covid price volumes,” Mr O’Leary told an industry conference.
“I think we’re in for a fraught period between now and Christmas where it looks like Europe is going to get very nervous again at the worst time of the year when people are making their Christmas travel plans,” he said.
