NYC Ferry Filing Bankruptcy, Service Not Affected

C.G. Hoffman

Despite more commuters than ever choosing to use the NYC Ferry Service, the company that runs it has filed for bankruptcy. The company, which is over 100 years old, has assured riders that the bankruptcy filing will not affect the NYC Ferry Service, whose contract with the city was renewed for another five years in 2023. The bankruptcy is for just one of their smaller lines, American Queen Voyages, an overnight riverboat cruise that has stopped running this week.

“There will be no disruptions to the system and NYC Ferry riders will continue to receive the same exceptional service reliability and convenience when riding,” said Jeff Holmes, a spokesperson for the NYC Economic Development Corporation.

Hornblower, the parent company, operates both land and sea trips in more than 100 countries and 125 US cities, and has been running the NYC Ferry system since 2016. The company has struggled to regain profitablility since the pandemic. Despite the company’s reassurances to the public, the company operates deeply in the red. An audit has revealed that the city has hidden $224 million in additional costs from 2015 to 2021, nearly half of the original cost estimate to run the ferry. The report also accused Hornblower of $12 million in overpayments.

Ridership is higher than ever, breaking records and surpassing pre-pandemic levels. Revenue from fares were up more than $6 million, but the average subsidies from the city per trip were nearly $10, on top of the $4 that commuters paid.