TRANSPORT group Go-Ahead has warned of a further squeeze on profits as air and rail services continue to come under pressure.
The Newcastle firm runs the Thames Trains and Thameslink commuter lines, as well as bus services in the UK, and also has a substantial aviation services operation.
Pre-tax profits for the six months to December 29, rose to £21.2m, compared to £20.1m in the same period of 2001.
But operating profits fell during the six months from £26.2m to £24.1m despite a strong performance from the company's bus division.
Professor Sir Frederick Holliday, chairman, said a recovery in earnings now hinged on an economic revival to bring back passengers.
He said: "The downturn in aviation services and the weakening in rail patronage will continue to affect group profitability for the remainder of the current financial year. Earnings will recover when confidence returns to the global economy and the London employment market resumes its upward trends.
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