FEARS of terrorist attacks are deterring people from travelling by train, says Stagecoach.
The bus and rail operator, which owns 49 per cent of West Coast Main Line franchise holder Virgin Rail, made the comments in a trading update ahead of its financial year end on April 30.
It says it remains “on course” to achieve expected earnings, but adds that the outlook for the UK rail industry is “more challenging than last year.”
The statement says: “We believe the reduced rate of growth reflects the effects of weakening consumer confidence, increased terrorism concerns, sustained lower fuel prices, the related effects of car and air competition, slower UK GDP growth and slowing growth in real earnings.”
UK regional bus operations, which include Stagecoach Cumbria and North Lancashire, saw revenue growth of 0.2 per cent in the 48 weeks to April 2 but Virgin Rail did better with 4.6 per cent growth.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here