NatEx Q1 revenue back to 2019-levels

In a trading update for the period 1 January 2022 to 31 March 2022, National Express Group reports its first-quarter revenue is back to 2019 levels. March saw revenue exceed 2019 figures.

It notes a particularly strong recovery seen in its UK and ALSA coach businesses, which it believes demonstrates strong pent-up demand for travel. It reports a rapid recovery in its coach business, with revenue in March at 70% of pre-Covid levels.

Its fuel is hedged 100% for 2022, 69% for 2023 and 33% for 2024 at prices in line with, or below 2021.

“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” – Ignacio Garat, Group Chief Executive

Ignacio Garat, Group Chief Executive, said: “We have made a good start to the year and it’s pleasing that revenues have bounced back to 2019 levels, improving through the first quarter. 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.

“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.

“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.

“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.

“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.”