THE future of debt-laden Channel Tunnel operator Eurotunnel hangs in the balance after the company's half-year losses rose to £82m.

The deficit was sharply higher than the £17m at the same stage last year, and Eurotunnel said its survival hinged on talks with financial and industrial partners.

It said it was continuing to be squeezed by low-cost airlines, while it was also losing market share in the cross-Channel passenger market.

Eurotunnel shares, which have halved in value since February, fell a further ten per cent yesterday to 20.25p.

A statement from chairman Jacques Maillot and chief executive Jean-Louis Raymond said: "As our shareholders feared, Eurotunnel's financial situation is worrying."

This month, the company said cost-cutting and changes to pricing would underpin its revival strategy as it tries to reduce its £6.4bn debt.

Published: 27/04/2004