We expect a trend that will lead us to positive growth around the middle of the year

David Azema, Eurostar

The firm, which runs services from London to Paris and Brussels through the Channel Tunnel, blamed the strength of the pound, and the lingering stigma of foot-and-mouth, for the slide.

While Britain was declared foot-and-mouth free in January, the disease had continued to reduce tourist interest in the UK over the January-to-March quarter, Eurostar said.

Revival hopes

Eurostar revenues were, at �104.4m, 6.8% lower over the three months than the same period in 2001.

The firm has now reported three successive quarters of declining revenue.

But chairman David Azema said that, once compensation for line closures was accounted for, revenues had fallen by 4.1% over the January-to-March period.

And Eurostar chiefs "expect a trend that will lead us to positive growth around the middle of the year", Mr Azema added.

Eurostar, whose backers included British Airways and the state rail firms of France and Belgium, has failed yet to make a profit since launching commercial services in 1994.

Losses at the company, which swallowed much of the bill for building the Channel Tunnel, hit �100m last year.