National Express ‘to benefit’ from cost of living squeeze
National Express believes the company will benefit from the cost of living squeeze as travellers seek out low cost bus services.
The company said it had made a good start to the year and revenues have bounced back to 2019 levels, improving through the first quarter.
Ignacio Garat, group chief executive, said: “The cost of living crisis is starting to bite for many people, and our bus services offer an attractive low cost alternative form of travel to help offset higher prices elsewhere.
“The strong recovery in our discretionary coach businesses in both the UK and Spain shows the pent-up demand for travel which is further evidenced by our strong trading over Easter.”
He continues to believe that its 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 said in a trading update for the three months to the end of March.
The company reported its seventh consecutive quarterly improvement, with revenue up 30% year on year in constant currency.