Stagecoach said: “UK Rail industry revenue growth has slowed over the last year and the outlook for the industry remains uncertain, particularly given its sensitivity to economic conditions.”
Adding: “As previously highlighted, we believe the reduced rate of growth reflects the effects of weakening consumer and business 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.”
Earlier in the week the rail union RMT confirmed Virgin East Coast staff will stage a a 24-hour walkout on October 3 in a dispute over job security and working conditions.
The RMT has claimed the jobs of around 200 of its members are under threat though operator Virgin Trains has insisted compulsory job cuts are not being considered.
Stagecoach notes in the trading update: “We will continue to take steps to mitigate the effects of lower revenue growth, focussing on cost control as well as additional initiatives to grow revenue.
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