The Office of Rail and Road (ORR) has released figures showing that train fare revenue rose more slowly that passenger journey numbers between April 2023 and March 2024, that government funding to the industry is falling, and that train operating companies have nearly doubled their dividend payments to shareholders.

While fare revenue rose by 14% to £10.4 billion compared to the previous year, passenger journeys rose by 16%.

One reason for this is that passengers are making shorter journeys.

While fare revenue is rising slowly, government funding is falling.

The UK and devolved governments cut their contribution to railway operations by £0.1 billion to £12.5 billion.

This reduction in funding is at a slower rate than in previous years.

The figures released by the ORR also reveal that in the latest year, eleven of the twenty franchised train operating companies were expected to pay dividends totalling £165 million.

This is an increase of £85 million on the previous year, more than doubling the payout.

Thirteen per cent (around one-eighth) of this figure represents payment by publicly-owned operators.

Key findings of the ORR’s Rail Industry Finance (April 2023 to March 2024) statistics include:

• 1.6 billion passenger journeys were made in Great Britain,16% more than the previous year, but 7% less than the 1.7 billion journeys made between in the pre-pandemic year April 2019 and March 2020.
• Fares income was £10.4 billion, up 14% on the previous year but 18% below pre-pandemic levels.
• The rail industry received £25.4 billion of operational income in the latest year, an increase of 6%.
• Government funding represents just under half (49%) of operational income.
• Operational expenditure decreased by 7% to £25.1 billion.
• The industry spent £10.2 billion on buying and enhancing rail infrastructure and rolling stock, an increase of 1%. Most of this (£7.3 billion) was investment in High Speed 2 (HS2).
• The total net profit margins of rolling stock companies (ROSCOs) fell by 12 percentage points to 22%. ROSCOs paid £331 million in dividends to shareholders.

“Our official statistics are an important barometer of the financial health of Britain’s railways. In the latest year, passenger journeys and fares revenues continued to increase, but remain short of pre-pandemic levels.

“Our figures also show that government support remains substantial, at just under half of income for the day to day running of the railway.”

Will Godfrey, Director of Economics, Finance and Markets, ORR