CrossCountry passenger rail revenues 'increase significantly'

Date: 17/12/2009

Passenger revenues have seen a "substantial improvement", CrossCountry rail franchise operator has reported.

According to a trading update from Arriva, CrossCountry revenues for the year to date increased by 2.1 per cent.

The past 13 weeks have been particularly profitable for the company, with revenue increasing by 6.1 per cent.

However, Arriva warned the improved revenue figures are insufficient to make up for declining franchise support payments.

Indeed revenue growth for this year would have to have been as much as ten per cent to maintain profit levels seen in 2008, the company said.

"Whilst the economic environment remains challenging there is evidence of recovery in passenger revenue growth in our UK trains division," it said.

Passenger revenues on its bus division also increased in the nine months to November 30th to 4.4 per cent.

Arriva also noted it had employed cost saving initiatives to help offset the economic downturn, with annualized savings of around £15 million at its rail franchises.