Trainline shares soar as travel giant shrugs off Mick Lynch for sales increase of 23% | Personal Finance | Finance
Online rail ticket firm Trainline enjoyed faster than expected growth this year with ticket sales up 23 percent.
The group made £2.6billion in sales in the six months to August 31 with a 19 percent rise in the UK.
The business estimated each strike day cost it about £5million to £6million in lost gross ticket sales.
Commuters have endured train strikes for over a year with walkouts from the RMT union headed by Mick Lynch repeatedly bringing many of Britain’s rail routes to a standstill.
Jody Ford, chief executive of Trainline, said: “Our performance in the first half of the year shows continued strong growth, with net ticket sales and revenues increasing across the UK and Europe.”
He added: “Given our continued growth and the strength and maturity of our business, we are today launching a share buyback programme to begin returning capital to shareholders.”
Trainline group revenues over the past six months increased £197million with UK consumer turnover increasing 16 percent, to £102million, despite 11 days of strike action.
UK passenger numbers have regularly come close to returning to pre-Covid levels with demand for the rail services recovering.
Revenue growth was largely pushed up by international booking with overseas sales up 26 percent and net ticket sales up 24 percent, at £559million.
Looking ahead, commuters could face an 8.5 percent increase in rail fares next year if the Government uses the same average earnings metric as last year.
The majority of commuter fares on Great Britain’s railways are regulated by the Westminster, Scottish and Welsh Governments.
Norman Baker, director of external affairs at pressure group Campaign for Better Transport, said: “Passengers face eye-watering increases.
“Rather than hammer rail passengers yet again, the Government should freeze rail fares – as they have done with fuel duty – until the long-promised ticketing reform takes place.”
A DfT spokesman said: “After last year’s biggest ever Government intervention to cap rail fare rises well below inflation, we’ll continue to protect passengers from cost-of-living pressures.
“We will not increase next year’s rail fares by as much as the July RPI figure.
“Any increase will also be delayed until March 2024, temporarily freezing fares for passengers to travel at a lower price for January and February.”
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