London transport fare to see biggest hike 3 stocks you can explore

London’s public transport fare is set to witness a sharp increase from 1 March 2022. Transport for London (TfL), a local government body that manages the transport network in London, has announced an average fare hike of 4.8%, which is the biggest annual increase in transport ticket prices since 2010.

The ticket fare to access the underground tube network will increase by 10p in zone1, while the rest of the network will see a price hike of 10p to 30p, which is the biggest rise since 2010. London’s bus network fare will increase from £1 to £1.20. The price hike comes as the TfL faces a financial crisis due to the pandemic and lower funds from the government.

The transport price rise will adversely impact the low-income families, who rely solely on public transport for their daily commute. Also, it will be another blow to households that are already facing a cost-of-living crisis amid higher inflation in the United Kingdom.

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Let us explore 3 FTSE listed companies that operate in the transport business and see the impact of price rise on their businesses:

FTSE250 listed company is engaged in sales of rail and travel tickets through its ticking platform. It provides apps and websites for travellers within the United Kingdom and for journeys outside the UK.

For the six months ended 31 August 2021, the company reported net ticket sales of £1.0 billion, up by 179%, while its total revenue was up by 151% to £78 million. An increase in ticket fare is most likely to benefit the company as it will earn a slightly higher commission due to higher ticket prices.

Trainline Plc’s last close was at GBX 230 on 14 February 2022, with a market cap of £1,105 million.

The UK-based company provides public transport services in different countries. It owns and leases buses and trains to deliver its services.

The company is in the middle of the acquisition deal that was announced in December 2021. National Express Group is set to acquire its rival Stagecoach Group Plc in an all-cash deal.

National Express Group Plc’s last close was at GBX 277.20 on 14 February 2022, with a market cap of £1,702 million.

The company provides passenger transport services in different countries. It operates through five key segments and is the second-largest regional bus operator in the United Kingdom.

The company reported total revenue of £3,109.7 million in the 26 weeks ended 25 September 2021. The adjusted operating profit for the company was £173.1 million.

FirstGroup Plc’s last close was at GBX 103.30 on 14 February 2022, with a market cap of £771.3 million.