After less than six months in business, the operator of Pensacola's new passenger ferry service announced Tuesday that he is pulling out of the region.

"It now appears that, despite our best efforts, our ferry operations will be coming to an end," Capt. George Aswad, owner of Gulf Coast Marine Services Inc., said in a lengthy statement emailed to the Pensacola News Journal.

Dan Brown, superintendent of Gulf Islands National Seashore, confirmed that the company will no longer operate the two, 150-passenger ferries. He said the National Park Service is searching for another operator.

"We are optimistic that we will have ferry service and that we will have it in 2019," he said.

The boats, which cost $2.6 million each and began operating in late June, were funded by the National Park Service with $4 million in restitution money from the 2010 BP oil spill and another $1.2 million in federal grants.

Still under construction is the city's $3.5 million downtown dock and ferry terminal building at Commendencia Slip.

Brown said problems with the ferry service were due in part to the late start date for the 2018 service. The service was scheduled to start in March but didn't start until late June because of delays in construction at the various county, city and Gulf Islands landing sites. The park service also had extended contract negotiations with Aswad.

"What has unfolded, has unfolded, but this doesn't mean that we won't have service going forward," he said. "Getting a new service started comes with a lot of effort and you are seeing that."

The ferries were originally scheduled to begin service in spring 2017, but service was delayed for a full year because of problems constructing the ferry landings and finding a ferry contractor.

Aswad has been in the passenger cruise business for more than 40 years. He also operates Island Express Ferry Service, which has shuttled passengers from Beufort, North Carolina, to Cape Lookout National Seashore since 2014.

Before starting the North Carolina service, Aswad operated ferry boats and passenger cruises in the New York area.

In his emailed statement, Aswad said his company lost more than $300,000 in the less than six months it ran the Pensacola service.

"This was due to the extremely high cost of the ferry operations and the unexpectedly low ridership," he said.

Aswad said the park service rejected a proposal by the company aimed at increasing ridership and lowering ticket prices. The proposal included using a smaller ferry owned by the company for shuttle trips back and forth between the city and Pensacola Beach. The plan also called for using the NPS ferries for excursions and other special events.

"While we expect an increase in ridership each year, the level of increase needed to cover the costs of NPS' proposed terms is way beyond any reasonable projections," Aswad said.

Aswad plans to continue ferry service through this weekend for the Blue Angels Air Show, which will be the last trip operated by Gulf Coast Marine Services.

City Manager Keith Wilkins said he was disappointed with the news.

"We are committed to the National Park Service and for them to move forward with their process of selecting another concessionaire," he said.

Wilkins said construction of the terminal building is not scheduled for completion until later this year. If a new ferry operator isn't found, Wilkins said it will be up to the city's next mayor to help decide the future of the new facility.

Escambia County Commission Chairman Jeff Bergosh said he also was disappointed by the news.

"I was hopeful it was something that would take off," Bergosh said. "If they were $300,000 in the red, that is very disappointing."

Bergosh said commissioners will likely discuss the ferry service at their regularly scheduled meeting on Thursday. The county has invested significantly in infrastructure at Quietwater Beach pier and would like to see the ferry service succeed, he said.

Bergosh said he has long questioned whether the ticket prices for the ferries were too high. Prices started at $20 for an adult ticket for an all-day, hop-on, hop-off ticket between the three legs of the ferry route.

Brown, superintendent of Gulf Islands National Seashore, said tickets prices are in line with other ferry services.

"People in Pensacola need to get out and ride ferries in other locations," he said. "Our ticket prices are far lower than in other locations and it does cost quite a bit to operate ferries of that size."

Melissa Nelson Gabriel can be reached at mnelsongab@pnj.com or 850-426-1431.