The state-owned Steam Packet lost tens of millions of pounds in revenue in the first year of the Covid pandemic.

Significant losses to both passenger and freight revenues are outlined in the directors’ report and financial statement for the year ending December 31, 2020, which will be laid before this month’s Tynwald sitting.

It says the government’s decisions to cancel the TT and Festival of Motorcycling in 2020 and 2021, and to impose travel restrictions on all visitors, had a very significant effect on passenger revenues and cashflows.

Thirty-five weeks of Covid-related travel restrictions in 2020 resulted in the loss of about £25m passenger revenues including the cancellation of both that year’s TT and Festival of Motorcycling.

The closure of Manx borders to non-residents, and the requirement for remaining passengers to self-isolate on their return to the island, resulted in the loss of 90-95% of traffic.

Figures released by the government’s harbours division show scheduled sailings carried just 66,875 passengers in 2020 compared with 565,423 in 2019.

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Last year, they carried 262,110 passengers as ferry travel resumed following the reopening of the Manx border at the end of June to fully vaccinated visitors from the UK, Ireland and the Channel Islands.

With the agreement of the Department of Infrastructure, the Steam Packet reduced sailings by 618 in 2020 to minimise operational costs while still maintaining a daily lifeline service.

Uneconomical sailings continued to be operated at the government’s request.

The imposition of economic restrictions between March 26 and June 1, 2020 also resulted in the loss of a further £1.6m in freight revenues.

Once restrictions were relaxed, strong on-line and on-island spending lifted freight performance resulting in revenues just £0.9m (4%) below normal annual trading, the report notes.

A reduced sailing schedule combined with other management initiatives delivered cost savings of £10.8m during the year. Non-essential capital expenditure was also suspended in order to protect cash reserves.

Treasury committed to provide financial support to the Steam Packet for at least 12 months.

The directors said the safety, health and wellbeing of passengers and crew remain their main priorities and they will continue to maintain the highest standards of cleanliness for all operations.

They add: ‘The Isle of Man Steam Packet Group has faced many difficulties during its long history and has always survived. The board has every confidence that it will do so again.’

The Manx government completed a £124m deal to acquire the Steam Packet in 2018.

Last year, Treasury issued £400m of sustainable debt one of which’s main purposes is to fund the Steam Packet’s £78m new vessel Manxman, currently under construction in South Korea.