Eventually, it aims to make wifi free on all services when the franchise comes up for full competition in 2017.
London Midland paid out £7 million in 2012 after driver shortages caused cancellations and delays.
Budget airline Ryanair’s traffic grew by almost a fifth in November to 7.7 million passengers.
Meanwhile Wizz Air, the Hungarian-owned airline that operates from Luton to countries in central and Eastern Europe, saw passenger numbers climb by 26%.