Former National Express sees half year profits fall

This was despite revenue growing 18.5 per cent to £1.57 billion for the Birmingham-headquartered public transport group.

There was strong passenger growth in bus and coach which helped UK revenue rise 20 per cent.

The loss of £23.4 million compared to a £20.5m profit for the same half year in 2022.

It was affected by £60m reduction in Covid-19 funding and inflationary costs.

Its UK bus operation was significantly impacted by the drivers' strike in the first quarter and associated wage settlement, retrospectively effective from the start of January.

A significant additional and confirmed funding package from West Midlands Combined Authority to protect services will deliver further benefits in the second half and extends to the end of 2024.;

The 12.5 per cent fares increase implemented from July 3 is assisting in recovering cost increases.

During the half year customer complaints reduced by 18 per cent and the gap in bus driver vacancies was closed.

Group chief executive Ignacio Garat said: "2023 is a year where the group transitions away from significant Covid-19 support. We saw strong revenue growth in the first half, driven by customer demand."

He said there had been significant wage inflation, but it was expected to be recovered – as planned – in the second half of the year.

"Although there remain some market uncertainties, encouraging passenger growth, pricing power, continued pipeline conversion, high levels of contract retention, the actions we have taken on pricing and costs, and the ongoing successful mobilisation of contracts all support our confident full-year outlook.

"I'd like to pay tribute to all of our employees, customers and partners for their considerable efforts, in a challenging environment, as we continue to lead the modal shift from cars to mass transit, improving social mobility and reducing carbon emissions in the process."