Eurostar suffers 10% fall due to Nice terror attack


Phil Davies phil.davies@travelweekly.co.uk


Eurostar passenger numbers fell by 10% over the peak summer months in a “challenging” period following the terrorist attack in Nice.


However, the high-speed Channel Tunnel rail service reported signs of recovery, with the drop in the value of sterling boosting travel to the UK. The company is on track to start


a service between London and Amsterdam by the end of 2017. The 10% drop in third-quarter passengers saw year-on-year numbers fall from 2.9 million to 2.6 million. Revenues dropped by 8% year


on year to £184 million from £200 million, although passenger numbers have increased year on year over the past eight weeks. “This uplift follows a challenging


period in which demand was dampened by the terrorist attack in Nice at the end of July,” the company said. “With the recent fall in sterling, the business also saw an increase in the number of passengers


RECOVERY: Weaker pound is making the UK an ‘attractive destination’


“This uplift follows a challenging period due to the terrorist attack in Nice”


coming from France to the UK during the October half-term holiday, with traffic up 18% year on year during that period.” Chief executive Nicolas Petrovic


added: “After a softening in demand over the summer, we saw an increase in travel from the Continent to London during the half-term holiday.


“With the weakening of the pound, the UK is proving to be an attractive destination. “The outlook to the end of the


year is encouraging with many travellers taking day trips to London for Christmas shopping.” He added: “Over the coming months, we are making a major investment in our fleet, service and stations to equip our business for expansion. The launch of our Amsterdam route at the end of next year marks a key milestone.” Eurostar plans a journey time of


under four hours between London and Amsterdam.


Wizz Air’s carryings grow 18% in October


Budget carrier Wizz Air plans continued network expansion in 2017 on the back of an 18.2% increase in passenger carryings last month. The central and eastern European airline flew


more than two million passengers in October, with an improved load factor of 90%. The figures gave the airline an annual rolling total of


22.1 million passengers, a rise of 19% year on year. The airline is to open its 26th base in Europe, in Chisinau, Moldova, in March and plans 12 new routes from Poland.


Santander in Spain is to become the 130th airport on the carrier’s network.


WIZZ AIR: Reports improved load factor of 90%


DROP: BA fears weaker demand will hit earnings in coming years


10 November 2016 travelweekly.co.uk 63


IAG cuts forecast annual earnings by €300m to €5.3bn


British Airways owner International Airlines Group has downgraded its annual earnings projections until 2020. The group, which includes


Aer Lingus, Iberia and Vueling, expects an average profit [Ebitda] of €5.3 billion a year, down from €5.6 billion forecast previously. Capital expenditure will also


be reduced by about a third from €2.5 billion a year to €1.7 billion as part of long-term planning goals. Capacity growth will be about


3% a year against 3% to 4% previously anticipated. However, IAG expects to maintain an operating profit margin of 12%-15%, a 15% return on invested capital and average growth in earnings per share of at least 12% a year. IAG gave the financial update during a capital markets day last week. Shareholders were told the group has a strong balance sheet and has no need for further deleveraging. IAG reported a 3.1% rise in passenger traffic in October, with premium traffic across the group up by 4.7% year on year.


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