LNER says strikes and bad weather made costs soar last year

LNER published its accounts for the financial year on October 1. The rail firm said took home £764.7 million in revenue from passengers in the 2024 financial year (ending March 31).

The year prior, it took home £674.9 million.

"Our revenue performance started the financial year well," said LNER.

"This is despite continuing industrial action reducing revenue by an average of £3.2m per period in the first half of the year.

"In total strikes have reduced revenue by £25.9 million in 2023/24."

The report attached to the accounts mentioned further financial losses that hit LNER, including "severe" weather.

Eleven named storms in 2023/24 were said to be a large contributor to a further £13.1 million in lost revenue, and an additional £15.2 million in costs associated to engineering works and train performance costs.

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Operating profits for the year reached £27.3 million, although the Department for Transport (DfT) provided the company with a £36 million grant, as part of an agreed subsidy. Without this, LNER had an operating loss of £8.7  million.

In 2023, LNER had to rely on a £96 million DfT grant. Without this, it would have suffered a loss of £52.9 million.

Data went on to show that 56.6 per cent of trains in 2024 were 'on time', which refers to arriving within one and three minutes of their scheduled time. This was a 2.6 per cent reduction from 2023.

As a result of the total 8,500 minutes LNER trains spent delayed, an additional £1m in delay repay costs had been incurred.

The report added: "The LNER budget for 2023/23 assumed that business travel would increase during the year. Although recovery in this sector has picked up since the end of 2023, there is still some uncertainty over where the normal level will be.

"Inflationary pressures have continued to affect leisure travel, as rising prices reduce disposable income for discretionary rail travel.

"The cost of living impact is a risk to LNER's recovery, and whilst high inflation has shown positive signs of slowing over the past 12 months, the last pressures on the cost of goods and services that LNER requires to operate remain."