Rail revenue growth slowdown

Transport giant FirstGroup has revealed slowing rail revenue growth after admitting a “disappointing” service for passengers amid strike action on South Western Railway.

The group said like-for-like rail passenger revenue growth slowed to 4.2% between September and January as “significant infrastructure challenges” added to widespread disruption from the industrial dispute over guards on trains.

It said passengers were also impacted by several “operating incidents” on South Western Railway (SWR).

The revenue growth marks a slowdown on the 5.5% reported for the first six months, excluding SWR.

FirstGroup said the challenges it has been facing in rail “resulted in disappointing operating performance for passengers towards the end of 2018”.

But it added: “We are working constructively with our industry partners to improve our operating performance and are encouraged with the improvements made since the start of 2019.”

Strike action was recently suspended on SWR after the Rail, Maritime and Transport union said there had been a breakthrough in the row, following a series of strikes which caused disruption to some of the busiest services in the country. Members of the union had been due to walk out on February 22 and on March 9 and 16.

Shares in FirstGroup rose 3.95p to close at 95.45p.