Trainline’s UK passenger volume fell to 5% at the start of the pandemic
Trainline (LON:TRN) announced Thursday that it caused a loss of £100 million as passenger numbers dive due to lockdown restrictions across the UK.
After earning £2 million in profits the previous year, Trainline recorded an operating loss of £100 million as net ticket sales fell 79% to £783 million.
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The FTSE 250 company saw revenue declines by 74%, down £67 million from £261 million at the end of February.
At the start of the pandemic, Trainline’s UK passenger volume fell to 5%. This was the start of a very challenging year for the company.
Consumer demand for train travel may remain low as businesses are often stuck with a hybrid working approach.
Russell Pointon, director of consumer and media at Edison Group, commented: So it’s not surprising to see Trainline posting a poor set of today’s full year results. ”
But Pointn suggests that measures taken by train companies during the pandemic will allow it to bounce back strongly.
“As the pandemic hit, the company has taken steps to reduce cash flow, halt marketing efforts and utilize the team’s government’s Farrow scheme, which cut average cash burns to £5 million a month. And the initial guidance has surpassed £8 million to £9 million. As all teams and marketing programs that have returned to work begin to increase again, the trains are aiming to bounce back hard.”
Meanwhile, CEO Jody Ford has given his thoughts on how trains are adapting to the future.
“Continued investment in products and technologies through COVID-19 measures will support a broader industry recovery despite ongoing uncertainty about COVID-19, and will continue to shift market shifts online and mobile. It’s good to continue to promote to tickets.”
“Today, I am extremely confident about the outlook for the future trainline. We advocate for the railway as a greener travel mode for millions of customers around Europe, and this business We are committed to promoting important long-term growth opportunities for our company.”
