The company, which operates the Channel Tunnel, said that sales fell to £538 million last year as, amid a fare war between low-cost airlines, it lost share in all its major markets.

"Competitive pressure remains strong and the impact on the market of the development of ‘no-frills’ airlines is being felt ever more strongly,” Jean-Louis Raymond, the Eurotunnel chief executive, said.

Passengers on the company’s Dover-Calais shuttle services fell by 8 per cent to 2.10 million cars, compared with a market decline of 6 per cent. Coach traffic slumped by 12 per cent, three times the market average.

While the number of lorries carried showed only a marginal decline, the market grew by 6 per cent, helped by an increase in trade with the ten countries, including Hungary and Poland, which joined the EU in May.

"The benefits of a faster crossing via the Channel Tunnel make less impact on such long-distance logistics chains,” M Raymond said.

The data raised further doubts over the future of the company, which is in talks with creditors about the repayment of £6 billion debt.

Eurotunnel shares fell 4 per cent in Paris trade.

M Raymond, part of a team which threw out the former Eurotunnel board last year, said that the company, which revamped lorry tariffs at the start of this month, would launch a passenger strategy “in time for the summer”.

"Eurotunnel has given itself the means to stabilise revenues and to restore margins,” he said.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts