Falling fuel prices hit demand for Stagecoach services in US

Stagecoach’s London operations have been hit by traffic disruptions in the capital
Stagecoach yesterday announced revenue growth across all its main UK subsidiaries during the 12 weeks to 25 July, but revealed a 5.3 per cent dip in its North American business.

The firm said the fall in fuel prices was hitting demand for its Megabus services in the region, but added that elsewhere in the North America division, trading was in line with expectations.

Virgin Rail Group’s revenue rose by 7.5 per cent, while UK Rail was up by 5.5 per cent.

In its UK Bus regional operations, revenue went up by one per cent, while the London bus business grew revenue by 1.5 per cent. The London operation “continues to be adversely affected by traffic disruption”, including road works, according to the firm.

Stagecoach said it expects full year results will meet expectations. Shares in the group were down by 2.14 per cent yesterday.