Our second interim report for 2021 projects a deficit of approximately EUR 18 million for the whole year. We will face a significant deficit despite the EUR 69.3 million in coronavirus subsidies received from Traficom this year. In 2020, we ran a deficit of over EUR 70 million.
The deficit is due to COVID restrictions lasting longer than anticipated. The interim report estimates that a total of 235.8 million journeys will be made in the HSL area this year, which is nearly 40 percent less than in 2019.
Between January and August 2021, our ticket revenue totaled EUR 142.3 million. In 2019, the corresponding figure was EUR 250.9 million.
The Government’s coronavirus subsidies have helped us. Support will continue to be needed in the coming years as financial challenges continue. We have sought savings whilst trying to ensure comprehensive public transport services.
Rising fuel prices are increasing operating costs
The interim report estimates that our operating income for the whole year will be EUR 712.4 million, exceeding the budget by just over seven per cent. The budget did not take account of the coronavirus subsidies granted by Traficom in May. Ticket revenue for the whole year is estimated to amount to EUR 232.4 million, which is nearly nine percent lower than budgeted.
Operating expenses are not expected to exceed EUR 713.5 million which would mean that the expenses would be 1.5 per cent below the budget.
Compensations paid to operators for the operation of public transport services account for 71 per cent of our operating expenses. Our operating expenses are estimated to be EUR 6.5 million lower than budgeted due to cuts in services.
On the other hand, rising fuel and energy prices are increasing operating costs. The interim report estimates that the cost of bus services will increase by five per cent, while our budget was based for an increase of just under 2.5 per cent.