Revenue growth on track for West Coast Main Line

Knauf Insulation's St Helens plant

Virgin Rail Group, which operates the West Coast Main Line service, has seen an increase in revenue of more than 5%.

The flagship service outperformed the industry average according to a trading update from minority shareholder, Stagecoach Group.

Stagecoach, which operates other UK rail services and holds a 49% stake in VRG, said that in the 44 weeks to March 4, VRG revenue had risen by 5.3%.

“UK rail industry revenue growth has slowed over the last 18 months.  Although there has been improvement in our growth rates, they remain low by historical standards,” it said in a pre-close update.

“Like-for-like rail revenue growth in our own UK Rail Division (including Virgin Trains East Coast) was 1.6% in the 44 weeks, with revenue growth at our inter-city businesses continuing to out-perform growth at our London commuter business.

“As expected, revenue growth at VRG’s West Coast franchise was higher than the industry average, which partly reflects revenues being adversely affected in the second half of last financial year by the temporary closure of Lamington viaduct in southern Scotland.”

Stagecoach said it was continuing to work constructively with the Department for Transport and other industry partners to meet its rail obligations, respond to variations in infrastructure and rolling stock plans and manage contract changes to ensure the continued stability and growth of its rail businesses.

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