Passenger journeys across Stagecoach’s UK bus division was slightly down in the first 12 weeks of its financial year from May to July, although trading overall is described as in line with expectations with revenue growth of 1.0 per cent. Journeys were 0.7 per cent down on last year which is attributed to reduced use by concessionary pass holders due to poor summer weather. Revenue growth in the London market was slightly higher, showing a 1.5 per cent increase on the previous year.

The rapid growth of Megabus with newly-launched services in continental Europe is yet to return a profit, according to the group’s latest trading update: “The European business remains loss-making at this early, high-growth phase of its development but progress to date has been encouraging with strong demand for our recently launched domestic coach services in Germany and Italy”.

In North America, falling fuel prices continue to have an impact on megabus services, according to Stagecoach, with like-for-like revenue down 3.4 per cent on the same period in 2014.

“Our sightseeing and some of our other leisure-related businesses are being adversely impacted by strong competition and the continued strength of the US dollar. We continue to see a number of ongoing challenges to growing profit for the division and its joint venture, Twin America, in the year ending 30 April 2016. As a result, we have revised down our expectation of North America operating profit.”

Source: BusandCoach