Southern rail owner Go-Ahead's shares rose nearly four per cent today despite passenger volumes dropping in the nine months to 1 April.
In a trading update, Go-Ahead said passenger revenue for Southeastern is up three per cent while passenger journeys are down 0.5 per cent.
Go-Ahead's London Midland rail franchise boosted passenger journeys by four per cent which helped push revenue up six per cent.
Southern operator Govia Thameslink Railway (GTR) saw revenue fall five per cent while passenger journeys were down 3.5 per cent.
Why it's interesting
Go-Ahead's drop in revenue and passenger journeys didn't hurt shares which increased nearly four per cent to 1,729p.
Shares rose after Go-Ahead said it will try and end its dispute with Aslef and RMT over the role of guards on trains.
What Go-Ahead said
As previously reported, passenger growth in Southeastern has been slowing. A cost efficiency programme has been implemented to offset the revenue shortfall over the remainder of the contract, until December 2018. The franchise continues to contribute to the Department for Transport (DfT) through a profit share mechanism, although now at a lower level. The DfT has begun the tender process for the forthcoming South Eastern rail franchise competition with the publication of its public consultation document.