FirstGroup boss Tim O’Toole said yesterday the firm’s Aberdeen bus passengers were getting a fair deal – despite them having to pay more for their journeys than people in bigger UK cities.
The Aberdeen-based transport giant’s chief executive also said he was happy with the fare and timetable structure for services in the company’s home city.
Passengers getting stuck in traffic is the main concern in Europe’s energy capital, according to the chief executive.
His comments came as FirstGroup announced a 43.7% jump in first-half profits yesterday.
It said underlying profits for the six months to September 30 totalled £28.3million, up from £19.7million a year earlier.
But one-off items including £15.3million costs related to disposals in the group’s UK bus arm and £7million for rail franchise bids, offset by goodwill adjustments, left it with statutory losses of £8million in the latest period.
The firm suffered a slump in profits in its UK bus division despite its first increase in passenger numbers since 2008.
Operating profits at the bus arm fell 18% to £17.3million as higher fuel costs and the absence of last year’s Olympic Games weighed on the business.
Total revenue from the division, which serves cities including Aberdeen, Sheffield, Plymouth, Bristol and Glasgow, fell 14% to £490.7million. But like-for-like revenue edged up 1.7% and FirstGroup said it saw underlying growth in passenger volumes of 0.7%.
Aberdeen passengers have long complained that their journeys cost more than equivalent trips in Edinburgh, Glasgow and other UK cities, and fares back their case.
Standard adult fares in the Granite City range from £1.20 for just a few stops to £2.50 for longer journeys.
Adults using the publicly-owned services in Edinburgh pay a £1.50 flat fare, while passengers in Glasgow – using FirstGroup buses – pay no more than £1.90.
Day tickets in Edinburgh and Glasgow are also cheaper than in Aberdeen.
FirstGroup faced protests over fares in Aberdeen outside its headquarters earlier this year.
The company has rolled out a series of special promotions and added more buses to its Granite City routes in an attempt to attract more passengers.
Mr O’Toole said: “We have had some positive engagement in Aberdeen and made adjustments to make the fare structure more responsive.
“We are happy with the changes we have made.”
FirstGroup is trying to boost bus passenger numbers by tailoring fares and networks to local market conditions.
The group said underlying rail passenger volumes grew by 3.6%, with like-for-like revenue from its trains rising by 5.7%. It plans to apply to run east coast intercity services.