(Alliance News) - National Express Group PLC on Thursday said it was sustaining momentum after another period of operational progress and revenue growth.
For the three months ended September 30, the Birmingham, England-based transport provider reported revenue growth of 33% year-on-year, putting revenue 5.0% ahead of its 2019 pre-Covid level at constant currency.
Revenue in the UK grew by 30%, which National Express attributed to "very strong growth" in core coach operations. The company also said it had been well-positioned to take advantage of summer rail strikes in the UK, and provided services to the Metropolitan Police during the funeral for Queen Elizabeth II.
Commercial bus patronage in the region continues to improve, now running at around 90% of 2019 levels and up 24% year-on-year. National Express said it is seeing considerable demand in several of its core UK inter-city corridors, with figures "well in excess" of 2019 levels.
In Germany, revenue for National Express' rail business grew 63%, reflecting contract awards of two new services at the start of the year.
Revenue was up 11% in North America, where National Express said its focus on recruitment has led to over 40% more hires than the previous year, narrowing the driver shortage significantly compared to the end of the last school year.
The company's Spanish subsidiary, ALSA, also reported revenue growth, of 35% year-on-year. Growth was particularly strong in long haul, where revenue grew by 53% and passenger journeys were up 42% year-on-year.
Looking ahead, National Express said it was well positioned to weather current market volatility, with inflation protection from fuel hedges and long-term supply agreements on most remaining non-staff costs.
It said that ongoing staff cost negotiations are progressing in line with management expectations.
"While we are mindful of the challenges we face in our sector, we are confident in our evolve strategy and look forward to making further progress," said Chief Executive Ignacio Garat.
National Express shares were trading 1.0% lower at 165.00 pence each in London on Thursday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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