Ports and shipping group P&O reported half-year losses yesterday as a result of fierce competition on its cross-Channel routes.

P&O said its ferry division saw half-year losses widen to £25.1m from £19.9m as it found itself at the centre of a price war involving low-cost airlines, other ferry companies and Eurostar.

Revenues were down to £467.1m from £505.7m a year earlier, with on-board spending among the areas affected.

P&O has pledged to turn the business around, and will announce the outcome of a review at the end of next month.

As well as the impact of the Iraq war and other security concerns, the group has been affected during the past two or three years by the growth of low-cost airlines, which have sparked a price war among ferry companies.