Insurance payment delay will keep us in the red, warns Eurotunnel

The company, which operates the Channel Tunnel and runs vehicle shuttle services, posted a net loss of 45 million euros (38m) for the six months to June 30, compared with a figure of five million euros a year earlier.

With revenues up 22 per cent to 331 million euros (279.5m), Eurotunnel said the result would have been higher had 48 million euros (40.5m) of indemnities for losses resulting from the fire not been blocked since May 2009.

The log-jam has been caused by legal claims brought jointly by Eurostar and SNCF against Eurotunnel's insurers.

Eurotunnel has so far received 157 million euros (132.5m) from its insurers following the fire, which led to one section of the tunnel being unavailable between September 2008 and February 2009.

Chairman and chief executive Jacques Gounon said: "I am pleased that traffic and revenues have both increased in the current economic crisis.

"However, if our insurance payments remain blocked, we shall be unable to declare a profit this year."

Eurotunnel generates income by charging other freight and passenger services such as Eurostar to use the Channel Tunnel. Disruption to European air traffic due to ash from the Iceland volcano boosted the cross-Channel market in the half year, leading to an 11 per cent rise in Eurotunnel's traffic revenues on a constant currency basis.

Eurotunnel said truck shuttle traffic rose 41 per cent in the first half of the year, despite continued pressure on the cross- Channel market due to the recession.

Car volumes increased by 17 per cent against the same period a year earlier, while coach business was up by 8 per cent.

Revenues from railway services such as Eurostar and freight train services rose 5 per cent, it added.