British Columbia Ferry Services reported a 13.5% drop in net earnings for its second quarter ending September 30.
The company said that drop in earnings to $53.7 million from $62.1 million resulted from increased operating costs.
BCFC's quarterly revenue rose, however, to $232.1 million from $220.2 million.
Earnings for the six-month period were down to $62.1 million from $75.4 million compared with the same period last year. BC Ferries continues to invest its earnings into its asset renewal program. The company expects earnings will decrease before improving due to the economic slowdown. The company also projected that its financing costs would increase, consistent with the company's long-term financial outlook.
Because of the economic slowdown, BC Ferries has initiated various cost-cutting measures due to the downturn in tourism from the United States and local travellers. Measures have included deferring filling staff vacancies, reducing corporate travel, limiting advertising and discretionary spending.
The high cost of fuel remains a main concern. During the quarter, BC Ferries paid its suppliers $72 million for fuel compared with $47.9 million during the same period last year.
Since the beginning of the year, BC Ferries has invested $246.1 million in its fleet.
It transported more than 21 million passengers and eight million vehicles during this fiscal year ending March 31, 2008. The company provides transportation services to the BC coast on 25 routes and 47 terminals with a fleet of 36 vessels.