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Stagecoach losing money on East Coast rail

RAIL

07 July 2017
 

Stagecoach has set aside £84m to cover expected losses on the East Coast rail franchise over the next two years.

Stagecoach’s UK Rail operating profit in 2016/17 was £31m, a margin of 1.4%. This was down from £66.7m in 2015/16, a margin of 3.1%. 

The company said the deterioration in performance was “principally due to our operations at Virgin Trains East Coast and South West Trains, where passenger revenue growth was insufficient to cover the combination of...

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