National Express Group PLC (LSE:NEX) said revenues in the first quarter of 2022 were back to 2019 levels.
The coach and bus services provider said the first quarter of the year saw the seventh consecutive quarterly improvement in revenues, with revenue up 30% year on year on a constant currency basis.
The group said it had renewed confidence in its short and long-term guidance, including that 2022 revenue will be in line with 2019 levels, and delivering at least £1.25 billion of free cash flow between 2022 and 2027 inclusive.
Ignacio Garat, the group’s chief executive, said the strong recovery in its coach businesses in both the UK and Spain shows the pent-up demand for travel.
He then proceeded to bang the drum for the ecological benefits of coach and bus travel over car travel.
“Modal shift out of cars is the single most important thing we can do to tackle climate change - and National Express has a major role to play here, providing safe, reliable and affordable services that not only help our planet but also our passengers in their daily lives. Governments around the world are aware of this and are adjusting policy towards greater use of public transport to meet their decarbonisation and clean air targets,” Garat said.
“We continue to believe that our proposed combination with Stagecoach, with at least £45 million of run-rate synergies, represents a superior value creation opportunity to the DWS offer; however, we will remain disciplined in the assessment of our options going forward,” he added.
READ: National Express reaches out to Stagecoach shareholders as takeover battle accelerates
National Express had previously agreed on a merger with rival transport services provider Stagecoach Group PLC (LSE:SGC) but was gazumped by DWS Infrastructure; the merger was, in any case, under investigation by the Competition and Markets Authority.
“Looking ahead, having made an encouraging start to 2022, we anticipate further strong recovery in demand over the balance of the year, and are confident of delivering further improvements in performance during the year,” Garat said.
Shares in National Express were up 7.6% at 242p.