Half-yearly profits have leapt 40 per cent for transport group Arriva after the addition of CrossCountry services boosted its UK trains division.

The Sunderland-based firm, which runs more than 13,000 buses and trains across the UK and Europe, said operating profits for the UK rail arm jumped to £14.8 million from £1.1 million a year earlier.

Revenues from the division surged after it took on the CrossCountry franchise - the most extensive in the UK, stretching from Aberdeen to Penzance - and saw passenger numbers on the service improve ten per cent year-on-year.

Overall, group revenues were 59 per cent higher at £1.44 billion, with profits up to £66.3 million from £47.3 million a year earlier.

Arriva warned higher fuel prices and the economic downturn presented challenges, but said its fuel costs this year were "substantially fixed" with two-thirds of the requirement for 2009 also secured in advance.

The company's UK bus division increased operating profits by 20 per cent to £45.5 million, based on a 14 per cent rise in revenues to £454.5 million.

Arriva said "encouraging" passenger growth reflected marketing initiatives and the wider take-up of concessionary travel. It added that more than 460 new vehicles will enter service on its regional bus network during this year.

The company's Arriva Trains Wales operation also contributed to the improved performance of the UK rail division. Arriva said 92.9 per cent of the trains on the franchise arrived at their destination within five minutes of schedule in the six months of June 30.

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