Revenue accelerates at Virgin Rail
A strong performance from the Virgin West Coast rail service has seen revenue surging over the last year, new figures reveal.
A half-year trading update from Virgin's partner in the franchise, Stagecoach, says the Virgin Rail Group's revenue has risen 8.7% in the 24 weeks to October 17.
It is the first full half year to include the performance of Virgin's extended service to Telford and Shrewsbury, launched in December to link in with the London Euston to Scotland route that takes in Birmingham, Sandwell & Dudley, Wolverhampton and Stafford.
The Virgin performance compares to a 5.8% increase for Stagecoach's other UK rail operations and a 1% increase at its regional bus services.
The company said: "Virgin Rail Group's West Coast rail franchise continues to perform strongly and that is benefitting taxpayers through profit share payments by the business to the UK DfT."
It said its other UK rail services had also perfomed strongly and it has hiked its expectations of operating profit for the year now it has a clearer view of its new East Midlands Train franchise, which started last month.
Stagecoach has also been shortlisted for the new Transpennine Express franchise and its joint venture with Abellio is shortlisted for a new East Anglia franchise.
But in North America low fuel prices have hit demand for its megabus.com inter-city coach services, with like-for-like revenue at megabus.com North America in the five months ended 30 September 2015 being 5.9% below the equivalent period last year.
