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Transport

Bus companies get £167mln rescue package as fare income drops 90%

Bus services in Scotland and Wales are already being supported by the respective governments.

Britain’s bus companies are to receive a £167mln bail-out package from the government to keep services running for essential staff to get to work.

FirstGroup PLC (LON:FGP) said its bus income has dropped by 90% since the pandemic started.

The group’s First Bus arm provides about 20% of the UK’s regional services and is currently running the equivalent of a weekend service to ensure NHS, supermarket and fulfilment centre staff can get to work.

Bus services in Scotland and Wales are already being supported by the respective governments.

Go-Ahead PLC (LON:GOG) added that around 30% of revenue from its regional buses comes from contracts and concessionary income and in most cases local authorities continue to pay at pre-crisis levels.

Stagecoach PLC (LON:SGC) added that revenue from its local regional bus companies is around 15% of "normal" levels while services have or will be reduced by 60%.

Megabus.com inter-city coach services in England and Wales will all cease running by Sunday 5 April, it added.

Stagecoach said it has £500mln of availability liquidity with £94mln of net rail liabilities outstanding.

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