Stagecoach up as government updates travel plans

The price of shares in FTSE 100 transport firm Stagecoach (LON:SGC) rose by 13.98% to 67.65p (as of 14:00 BST) as a phased restart of normal bus, tram, and light rail service was announced in the UK. Given that social distancing will impact capacity and revenues, government support levels will be raised.

CEO Martin Griffiths commented: “We are pleased that the Government has recognised the importance of safe and sustainable public transport now and for the future. We are uniquely placed to drive the country’s recovery, helping rebuild our regional economies, reconnect people and their families, and support the country’s long-term objectives around decarbonisation, improved air quality and better health.

“This funding is designed to help transition our public transport networks from lockdown to more normal levels. It is important the right level of resources remain in place to ensure public transport operators can continue to provide local communities with the services they need.

“With the comprehensive safety measures we have put in place and the support of our passengers and our employees, we stand ready to restore our services to closer to pre-COVID levels. We will continue to work with our local authority partners and other key stakeholders on making the best use of increased capacity“.