Southern Rail operator claims profits have suffered due to strike action

Southern services have been severely disrupted this week after a strike by drivers in the Aslef union
PA

Southern Railway operator Go-Ahead has warned that its profits have been hit by recent strike action.

The transport giant, which runs Southern through Govia Thameslink Railway, said it would take a hit from the bitter industrial dispute as it faces surging costs.

Go-Ahead said: “The GTR team continues to work towards a resolution to these issues and provide the best possible service to customers under the circumstances.

“In doing so, we expect to incur additional costs in this financial year.”

Southern services have been severely disrupted this week after a 48-hour strike by drivers in the Aslef union.

The strike ended at midnight but services remained badly disrupted today. Drivers will continue with an overtime ban, and will strike again tomorrow unless there is a breakthrough in the row over driver-only trains.

Go-Ahead said it was in talks with the Department for Transport over financial claims relating to the dispute, but extra costs of the strike action to the GTR business, together with higher costs of work in overseas markets, mean its full-year expectations for the rail division are “slightly below” its previous forecast.

Transport analyst Joe Spooner at Jefferies estimates Go-Ahead is facing a further £3 million hit from ongoing strike action.

The RMT union is embroiled in a separate dispute with the company over changes to the role of guards, which has led to strikes in recent months. Guards are due to stage a 48-hour walkout next week, and again over the new year.

Go-Ahead said aside from the problems facing Southern, its business is on track, with first-half revenues expected to rise by around one per cent.

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