HOVERSPEED services between Dover and Calais could be in jeopardy if financial results prove unsatisfactory, the company’s boss has warned.

Sea Containers - Oversupply’s parent company - has announced a net loss of $5.4m in 2004, following a bad fourth quarter of the year.

Hoverspeed’s operations have been restructured, with the withdrawal from the loss-making Northern Ireland the Newhaven-Dieppe services, and the Northern Ireland seacat has been brought to Dover.

Hoverspeed has also entered into a joint venture in Greece to operate a car ferry between Piraeus and the Western Cyclades islands of Sifnos and Milos starting later this month.

But James Sherwood, President of Sea Containers, said the company’s ferry operations, including Hoverspeed, incurred a loss of $16.9m in the last quarter of 2004.

He said: "Part of the problem has been the rapid increase in discount air services from the UK to Ireland the Continent, drawing passengers from the ferries.

"While we will not entirely eliminate the other ferries loss in 2005, we think it will be substantially less than in 2004 and our strategy is to move this business into profit for 2006, largely by moving our fast ferry fleet from the UK to the Mediterranean.

"However, Hoverspeed’s Dover-Calais service will continue unless its results prove unsatisfactory."