Stagecoach said the trading performance offered further evidence people were opting for bus and train travel in the face of high fuel costs.

The UK bus division achieved a 9.3 per cent improvement in like-for-like revenues in the 16 weeks to August 17, including a 4.9 per cent rise in passenger numbers.

Stagecoach said this more than compensated the company for cost pressures stemming from its higher fuel bill.

Around two million UK passengers travel on Stagecoach buses every day in 100 towns and cities in the UK. The firm has a fleet of around 7,000 buses.

Stagecoach added: "People are continuing to switch from travelling by other modes of transport to travelling by bus."

In the UK rail arm, like-for-like revenues were 9 per cent higher, while the company's Virgin Rail joint venture achieved a 2 per cent improvement.

Stagecoach said: "We are encouraged by the current trading performance of the group, which provides further evidence of modal shift towards bus and train travel prompted by high fuel costs, environmental concerns and healthy lifestyles."