Stagecoach sees profits plunge in pandemic but remains optimistic of growth after Covid

The chief executive of bus operator Stagecoach today predicted buses will bounce back from the collapse in demand during coronavirus as the government pursues a green agenda.

Passenger journeys have fallen precipitously since the pandemic as the government urged people to stay at home and locked down high streets.

However, chief executive Martin Griffiths said: “I am an optimist. Things will get better and public transport will rebuild. We have to get people out of cars; all the governments of the UK are committed to public transport.”

While the public appetite for buses was still down 60% during the past six months, passenger numbers increased significantly in recent days after collapsing during the November lockdown. 

Its commercial revenues jumped from being 54% down on the year a fortnight ago to  44% down today.

Buses were not as badly hit as trains during the pandemic, and Griffiths said he felt for his peers who remained in the rail business. 

Stagecoach pulled out of rail after the government insisted on companies taking on more of the pension burden of staff. “I do sympathise with my multimodal colleagues,” he said.

The government is still reviewing the future of rail in the UK and Griffiths said he would be keen to re-enter the industry if the conditions were right. 

“We’re a public transport company: we want to grow in public transport," he said.

Stagecoach’s bus operations continued through the pandemic with government support provided on condition that it does not make a profit, so the first half of the year saw it make just £400,000 against £66.6 million a year earlier.