Channel rail firm suffers sales decline

Eurostar has slumped to an annual loss, blaming terror attacks in Europe and tough trading conditions.

The cross-Channel rail service, which stops at Ebbsfleet and Ashford International, said passenger numbers were down 4% to 10 million in 2016.

It reported an underlying operating loss of £25 million.

Sales declined 3% to £794 million, which would have been worse but for the fall in the value of the pound after the Brexit vote.

Sales were down 8% at constant exchange rates.

Despite this, the firm had a surge in late bookings towards the end of 2016, reporting its busiest December ever.

Sales revenues for the first 10 weeks of the year are up by 12% and it said markets outside Europe were performing well.

Chief executive Nicolas Petrovic said: “The market is now rebounding strongly and we are optimistic about the growth prospects for the year.”