BC Ferries releases year-end results

BC Ferries this week published its Year-End Results for Fiscal 2015, revealing the stronger financial performance for the year that underscores the Ferry Commissioner’s decision to hold future fare increases to 1.9% each year in the next performance term.

The corporation’s 5.1% increase in revenue is largely attributed to increasing vehicle and passenger traffic, especially in the final quarter of the year, when good weather boosted ferry traffic significantly compared to the dismal results in the spring of 2014.  The 2014 fuel surcharge raised $13 million, but there’s no reference to how much of the extra revenue comes from the new 50% fare now paid by seniors.

Cost inflation was held at just 1.1% overall, though the underlying trend of a 5% increase in maintenance and administration confirms that the bulk of the cost savings have been achieved through lower operating expenses (fuel and labour) which fell this year by 1% – the product, no doubt, of falling fuel prices and service cuts to the minor routes.

It may be the good news that shareholders and government wanted to hear, but it’s too bad that the nine-page year end report fails to even acknowledge the April 2014 service cuts as a “significant event” for the corporation. It was certainly a significant event for Gabriola.

More reaction on the Opinion page

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