Trainline shares tumbled almost nine per cent on Wednesday as the government unveiled more details on how sweeping railway reforms will impact the ticketing sector.
Great British Railway (GBR), the arms-length body that will oversee the UK’s railway system, is set to bring together individual train operator’s onto a single website.
The Department for Transport (DfT) said late on Tuesday that GBR would be able to reform the fares and ticketing system without operators’ agreement.
This would empower the body to deliver “industry-wide modernisation and reform” from the privatisation era, when even “minor changes meant securing agreement across multiple train operators with their own commercial interests,” a document issued by the DfT reads.
“This will enable GBR to simplify the ticketing system and make it easy for passengers to find the right fare,” it adds.
“While the intent of this legislation is to enable GBR to deliver these benefits, the Secretary of State will also retain specific oversight over the affordability of the railway.”
Trainline’s stock has reacted poorly as more details emerge on the future of Britain’s fragmented railway sector.
Shares are trading down over 20 per cent this year to date. The stock fell nearly seven per cent in January on the day the UK govenrment outlined plans to launch a state-backed rival for the London-listed firm.
Trainline reported £34m in full-year profit in 2024, a 60 per cent year-on-year increase driven by booming European sales. That success has helped quell investor concern given the uncertainty over the future of its UK business.
The government is aiming to simplify the complex web of fares and tickets that have long plagued British customers. It insists the private sector will “continue to play a key role” in these plans.
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