B.C. Ferries’ operating profit rose in the first half of its fiscal year, on the heels of a report that cuts to mid-coast service have cost the region millions in tourism revenue, and another study saying higher fares have kept millions of potential passengers at home in the past decade.
Operating profit increased to $122 million in the six months ending Sept. 30, from $103 million for those same months in 2013, Ferries said.
“All profits we realize are invested in the future of the company and help fund capital initiatives,” Mike Corrigan, B.C. Ferries chief executive officer, said in a statement.
In the first half of the fiscal year, net earnings rose to $90.3 million from $68.6 million. Higher earnings were due to increased traffic on major routes, higher fares, growth in services such as retail and vacation packages and decreased financing costs. A four per cent fare increase came into effect in April, after a 3.5 per cent fuel surcharge in January.
In the past 10 years, 31 million passengers decided not to ride a ferry because of higher fares, said a study by the Union of B.C. Municipalities.
Passenger numbers in the first half of the 2014-2015 fiscal year were unchanged from the same period last year, Ferries said Friday.
Tourism revenues have slid by $3.9 million and the province has lost $1 million in tax revenue since mid-coast service reductions were imposed, said a study for Cariboo and Chilcotin organizations, including those promoting tourism and economic development.
