Net earnings were up and traffic numbers were down for BC Ferries in the first quarter of this year.
The company made $4.3 million compared to net earnings of $3.3 million in the first quarter of the previous year.
The revenues increased by 1.2 per cent to $200 million. However, its operating expenses also increased by 1.1 per cent to $178.8 million.
The corporation says the earnings reflect lower financing costs and increased fares, partially offset by reductions in fuel surcharges, lower traffic levels, lower ferry transportation fees and operating cost increases.
There was a decline of 1.8 per cent in vehicle traffic and 1.4 per cent in passenger traffic. BC Ferries attributes the dwindling numbers to the timing of the Easter holiday this year — the first quarter of fiscal 2014 included only the Monday of the Easter holiday weekend while the first quarter of 2013 included the entire Easter weekend.
The corporation also spent over 12 million dollars on vessel upgrades.
Three new ferries will be replacing the 48-year old Queen of Burnaby and the 49-year old Queen of Nanaimo by 2016.
Last week, BC Ferries released the details of compensation packages for its top executives, some of whom received six-figure bonuses.
On Thursday, NDP leader Adrian Dix told Global News the B.C. Premier and Transportation Minister are directly responsible for the lavish bonuses at the time when the province is doing a lot of belt tightening in other areas.
“It does not make sense to be giving six-figure bonuses when ridership is going down and fees are going up,” said Dix.
In April, the corporation hiked its fares by four per cent. The fare hike was the first of three planned increases approved back in October. BC Ferries says the fare hikes are needed because of the rising cost of operating and capital expenditures.
The corporation is holding an annual general meeting today. More updates to come…
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