Rail profits drop but Arriva buses do well

TRANSPORT group Arriva yesterday revealed that its UK rail profits slumped 64 per cent as expectations for passenger revenues growth on its CrossCountry franchise proved too optimistic.

The division made an operating profit of 12.1 million, down from 33.7m a year earlier.

A weak spring and flat summer meant CrossCountry revenues were up 2.6 per cent to 328m in 2009, compared with a figure of 371m anticipated in its 2007 franchise bid.

Arriva said its UK bus division – which includes services in Glasgow – delivered a good performance as cost controls helped it to offset a 30m rise in its fuel bill. Operating profits in UK bus were 91.2m, against 99.3m a year earlier.