A TRANSPORT operator running North-East bus services has issued a bullish outlook over the division’s long-term success, despite economic issues denting its progress.

Stagecoach Group says financial constraints and lower fuel prices forced like-for-like revenues lower across its bus network in the 44 weeks to March 4.

The company runs buses across Teesside, Hartlepool, Sunderland, Newcastle and South Shields, South Tyneside, but saw like-for-like passenger journeys, outside London, slip 1.7 per cent in the period.

Ross Paterson, finance director, said: “We remain positive on the opportunities.”

It was given some cheer from its rail division, which saw UK like-for-like sales increase by 1.6 per cent, though officials issued caution on slow revenue growth.

The firm oversees the Virgin Trains East Coast service under the Inter City Railways banner after Stagecoach and Virgin took on the route from Directly Operated Railways.

It is due to use rolling stock made at Hitachi Rail Europe’s factory in Newton Aycliffe, County Durham, from next year.