Snow in America slows rail and bus operator First Group

Snowstorms on the east coast of the US last month have hit revenues at First Group.

The bus and train operator has cut its forecasts for the year, saying earnings from US coach and bus services would be lower after missed school days because of the bad weather.

Competition from airlines has also been a drag on the company’s Greyhound bus services in the US, where more people are taking budget flights instead of long-haul coaches.

In the UK, like-for-like revenues on rail services increased 1.4% over the quarter despite ongoing challenges on its new South West Trains franchise and its Great Western operations into Paddington. First is negotiating with the Department for Transport to run GWR on a contract basis for a further two years from April 2020 to 2022.

UK bus services saw a 1.4% like-for-like revenue increase, in the quarter.

First has been refinancing its debts in a move which will lead to lower annual interest from next year.