A TRAVEL operator running buses across the North-East says its regional services have boosted revenues.

Go-Ahead, which has a regional fleet of about 675 buses, said the overall division has seen five per cent revenue growth.

The company said contract revenue has driven the increase, with a proposal for a contract scheme in Tyne and Wear endorsed by the sub-committees of the North East Combined Authority.

The company employs more than 2,000 people in the North-East, with services covering Tyne and Wear, County Durham, Teesside and Northumberland.

Last year, it carried more than 71 million passengers on journeys across the region.

Its rail division, which operates the Southern, Southeastern, London Midland and Govia Thameslink Railway (GTR) franchises through its 65 per cent-owned subsidiary Govia, also saw higher passenger journeys and revenue growth.

The results were revealed in a trading update covering the period between June 29 and October 20.

David Brown, Go-Ahead group chief executive, said: “Trading in the first quarter has been robust and our full-year expectations for both bus and rail operations remain unchanged.

“Our London and regional bus operations continue to perform well and we remain on course to achieve our operating profit target of £100m by 2015/16.

“This has also been a busy period for our rail business, during which we launched GTR and began Southeastern’s direct award contract.”