The U.K’s longest train route operator, Arriva Plc, has announced that sales for the first half of this year have risen by 9.4% on the strength of increased bus ticket revenue and higher demand for mainland European train travel.

The English-based company, operating out of Sunderland, stated that its sales reached £1.58 billion.

However, despite the increase in sales, Net income fell to 20p per share on the back of an 18% fall, equivalent to £40 million on the back of declining British rail travel during the recession. These figures mirror many of the operators in the travel industry who have been hit by higher operating costs which have off-set profit made from sales.

“Our underlying financial performance is strong in a challenging environment,” said David Martin, Chief Executive Office. The CEO added that the group reduced its “central costs” by around 17 percent, most notably due to high fuel charges, which are expected to fall in 2010.

In 2008, Arriva purchased four separate bus companies on the European routes including major operators Eurobus of Switzerland and Empresa de Blas y Cia SL of Spain. Arriva also successfully bid for the franchise of CrossCountry rail, which serves much of northern Scotland and all of England, beating competition from Virgin Rail Group Ltd.

Arriva said it had achieved ‘targeted mileage reductions’ in its British bus operation as financial debt rose to£ 21.8 million, of which fuel costs contributed £18 million. The cost of acquisitions, currency rates and fleet investments also had significant impact.

With thanks to www.bloomberg.com for the above information. For more details please refer to their website.