First-class demand just the ticket for rail group

The Aberdeen-based firm reported "encouraging signs" for all its more expensive rail fares – helping train passenger revenues rise 4.4 per cent in the first half of its financial year despite a reduction in regulated fares in January.

Advance sales of first-class tickets, flexible and anytime tickets have seen a boost, in particular as travellers continue to look for value.

A FirstGroup spokesman said: "Demand is coming back to where it was two years ago – it's an indicator of people changing the way they travel. They are increasingly wanting to go back to having more flexibility."

The group is also hoping the trend will weather upcoming public sector spending cuts, with most of the current increased demand coming from private sector commuters and business travellers.

FirstGroup, which recently announced the departure of chief executive Sir Moir Lockhead after 21 years with the firm, has seen strengthened passenger numbers across all its franchises.

It runs services including First Great Western, First ScotRail and First Hull Trains.

The firm also revealed that like-for-like bus passenger revenues have risen by 1.3 per cent since the end of March.

FirstGroup runs services in towns and cities across the UK including Leeds, Bradford, York, Halifax, Sheffield, Rotherham and Doncaster. It is keeping a tight lid on costs in the bus arm to offset difficult trading conditions, while also managing routes carefully to save cash.