Bus Éireann Records Losses For Last Year
Bus Éireann has recorded losses of €9.2 million for last year.
As reported by The Irish Times, Bus Éireann's latest accounts reveal that its overall revenue in 2020 dropped 22% to €284.8 million from €366.5 million the previous year.
The company reportedly said that it delivered 91% of planned services on Expressway routes last year despite COVID-19 restrictions, which caused the company's losses.
Bus Éireann reportedly said that it implemented a viability plan in September of 2020, which has resulted in a planned consolidation of Expressway routes from 18 to 14 as it ceased services from Dublin to Cork, Galway, Limerick and Belfast.
The company reportedly said that overall passenger journeys on more than 230 Expressway and PSO (public service obligation) routes were down 42% from 89.4 million in 2019 to 51.7 million last year as a result of the COVID-19 pandemic, and Bus Éireann chief executive Stephen Kent reportedly said that the vast majority of the company’s losses were in its commercial services, which were not in receipt of state subvention or government supports in the period to July 2020.
Profits on PSO routes including city bus services in Cork, Limerick, Galway and Waterford were reportedly up from €0.9 million in 2019 to €1.9 million last year as state subventions increased by 53% to €93.8 million to counteract a 49% reduction in passenger numbers, and Bus Éireann reportedly also received €18.7 million in COVID-19-related government supports.
Kent reportedly said that he expects that Expressway will return to profitability after the COVID-19 crisis as annual travel patterns begin to return to normal levels, and reportedly stated, "There will be a continued investment in new fleet and technology, reflecting Bus Éireann's long-term commitment to a sustainable and profitable future for Expressway and our desire to provide a best-in-class customer experience."
Bus Éireann Chairman Statements
Bus Éireann chairman Aidan Murphy reportedly noted that the company's revenue collapsed by more than 90% within a week of the first COVID-19-related lockdown, and services and revenue have generally been down in the range 50%-90% across all routes.
Murphy reportedly also said that Bus Éireann significantly enhanced to services in a number of towns and cities last year including Ballina, Cork, Drogheda, Dundalk, Navan and Limerick due to funding provided by the National Transport Authority, and that the decision to withdraw four Expressway services was taken to avoid unsustainable future losses and protect services for the remaining 150 communities that are served by the Expressway network.
The above news follows last month's news that Bus Éireann had invested €16 million in its Expressway coach service.
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