Go-Ahead to beat expectations as drivers abandon cars

5th May 2011 07:42

Rail and bus operator Go-Ahead is benefiting from cash-strapped drivers abandoning their cars to take the bus and expects to deliver a full-year operating profit ahead of expectations.Go-Ahead, which operates city and regional bus services across England, as well as the Southern, Southeastern and London Midland rail franchises, said trading in the quarter to 2 April was strong. Passenger numbers rose by 7.2% from the same period a year ago on deregulated bus services and by 5.8% on trains."The continued growth in bus passenger numbers demonstrates that the public are increasingly leaving their cars at home," said chief executive Keith Ludeman. "The public is struggling with the current high levels of fuel pricing and many are now choosing the better value alternative of the bus."He said that growth in trains, many of which serve London, "suggests that employment levels and discretionary journeys remain robust in the capital."Bus revenues were up by 9.8%. Revenues at Southern, Southeastern and London Midland were up by 11.6%, 7.5% and 11.2% respectively."While there is much to be positive about in today's trading update, we continue to remain cautious about the medium term prospects for the wider economy," the company said.---RG