National Express upbeat despite fuel woes

British transport group National Express today said it was "confident" of combating rocketing fuel bills with pricing promotions and cost savings.

The rail, bus and coach operator said it was planning to use "innovative pricing mechanisms" to help offset soaring oil prices, which yesterday broke through the US$140 a barrel mark.

National Express is expecting "significant" year-on-year earnings growth for the half-year and full year results, adding that it hoped to benefit from the switch to public transport amid sky-high petrol prices.

The firm - whose operations include National Express East Coast rail service and nationwide coach network - moved to reassure that fuel costs, which have weighed heavy on stock market listed transport firms, represent a fraction of total revenue, at 5% for its trains business, 14% for coaches and 10% for buses.

National Express has also "hedged" itself against rising oil prices for 100% of its fuel needs this year and 47% for 2009.