Arriva benefits from bus improvement

Transport group Arriva today said a strong performance from its UK bus division helped annual operating profits improve by 7% last year.

Sunderland-based Arriva, which runs 6,500 buses in cities including Liverpool and Leeds, posted a surplus of £128m (€166.6m), although the figure was impacted by higher fuel prices and the cost of bidding for three rail franchises.

Helped by marketing initiatives and increased demand, the bus arm achieved a 16% profits increase to £87.9m (€114.5m), with revenues up 7% to £814.7m (€1.06bn). The improvement came despite fuel price increases costing £8m (€10.4bn) in 2007.