STAGECOACH’S chief executive has said people will travel less on a permanent basis because of the shift to home working as the transport giant posted a 92 per cent drop in profits.

However, Martin Griffiths said coronavirus could be “pivotal” for public transport as it is further factored into future society.

He said he believes bus usage as a percentage of the overall trips people make will increase and while it has been a “difficult year and the next few months are very uncertain, in the longer term there is a lot to play for”.

Shares were up 10.68% at one stage after the interim results for the half-year ended October 31, and closed at 78.65p up 6.36%.

Mr Griffiths said that he is “optimistic” that bus travel demand will bounce back for the Perth-based business amid a push to switch away from single car journeys.

He said: “Some things have changed forever.

“Not everyone will be going back to working five days a week (in the office).

“The numbers of journeys we make over time will be less, but I’m confident we’ll pick up a bigger proportion of that smaller number of journeys.”

READ MORE: Stagecoach profits plunge 92 per cent amid coronavirus

He added: “Our industry’s plastic bag moment is the single car journey - government and local authorities have got to address how to get people out of cars and on to public transport.

“I don’t think anybody has lost sight of that coming out of this pandemic.”

His comments came as the group reported the plunge in half-year profits to £5.4 million as it was hammered by slumping demand for public transport.

It saw revenues nearly halve to £454.6m in the six months to October 31, against £800.2m a year earlier, although shares jumped 10% as the group remained profitable.

Coronavirus lockdowns and ongoing restrictions have left regional bus commercial sales at around 54% of levels seen last year, which the group said was a step back, having recovered to almost 60% at one stage.

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Bus demand fell to 44% of pre-Covid levels at one point during the second lockdown across England, the company added.

Many have switched to travel by car during the crisis, with Stagecoach saying car use is “significantly” ahead of public transport, at up to 90% of levels seen a year earlier in October.

However, the group said it has still seen a “significant recovery” in passenger demand since May.

It also put faith in support from the Government “in pursuing our shared objective to drive modal shift from car to public transport”.

The industry is holding ongoing talks with the Government to secure future support, given the impact of the pandemic on working patterns and public transport demand.

Mr Griffiths said: “We are working closely with our government and sector partners on a new framework to ensure the country’s public transport networks adapt to new working and travel patterns, are fit for the post-Covid world, and meet the continuing needs of our customers and communities.”

Half-year results showed interim regional bus earnings slumped 84% to £9.1m, helped by Government support to keep essential services running through the pandemic.

Stagecoach did not disclose how much government support it received, but said the group would have posted losses without the support.

In its rail arm, Stagecoach said the Sheffield Supertram business is receiving government payments to provide essential tram services as the group continues to unwind its former train operating companies.

Mr Griffiths said public transport has a key role to play in economic recovery and environmental sustainability.

He said: “We have a strong business, with good liquidity, devolved operating companies closely focused on our customers and local communities, and a supportive relationship with government and our local authority partners.”