Stagecoach upbeat after rail improvement

The transport group, which runs South West Trains and East Midlands Trains, added that conditions and revenue trends had improved across the group.

Passenger revenues at its bus division improved two per cent on a like-for-like basis in the 12 weeks to July 25 and were up 18.7 per cent at its West Coast mainline franchise, which it operates as a joint venture under the Virgin Rail banner.

Demand has jumped in recent months on the line as a result of marketing campaigns, advance ticketing and reduced disruption due to engineering work.

In North America, where the company has a fleet of 2,800 coaches, revenues were ahead 6.9 per cent in the three months to the end of July.

Stagecoach recently reported a 24 per cent drop in annual profits but said the outlook for its rail division was improving due to economic conditions.

It said today that the positive trends in rail and in North America had continued, although it admitted this was subject to uncertainty.

The company added: "Whilst the effect of the change in the UK Government and the sustainability and pace of economic recovery remain uncertain, we believe that on balance the outlook for the group is positive."