PASSENGER travel on Britain’s railways is booming because of the high cost of petrol and diesel.  Four of the major operators — Go-Ahead, Stagecoach, Arriva and National Express — have all now published business results showing significant increases in passenger numbers and revenue.

Go-Ahead Group PLC led the way. In a statement, the group said revenue growth at the Southern and Southeastern rail franchises will be “similar'' to the 13 percent increase logged in the first half of the fiscal year, as higher fuel prices encourage motorists to use trains.

The group, which is also the largest operator of buses in London, saw its Stock Market price surge, valuing the Newcastle Upon Tyne-based company at £746 million.

Perth-based Stagecoach said the UK rail sector was undergoing a “renaissance” due to increased demand, investment and more effective marketing.

“We believe the combination of increased road congestion, rising public concern about environmental matters and higher fuel prices will further boost demand for public transport,” said chairman Robert Speirs.

The company’s pre-tax profits for the year to 30 April from its bus as well as rail activities rose from £162m to £174m as total sales increased by 16 per cent to £1.76bn.

Stagecoach operates the South West Trains and East Midlands Trains franchises, and has a 49 per cent share in the Virgin West Coast operation.

Rail passenger sales rose 36 per cent to £777.8m, while its share of profit from the Virgin Rail Group joint venture rose from £13.5m to £32.2m.

But Stagecoach warned there was a “significant risk” that the huge modernisation programme on the west coast line, being undertaken by Network Rail, would not be finished as planned by December, potentially hampering expansion plans.

At Arriva, “strong growth” in its train and bus operations was reported in a trading update. Passenger revenue was up 10 per cent in the first 24 weeks of the CrossCountry rail franchise compared to the equivalent period last year. At its other franchise, Arriva Trains Wales, revenue has grown by 10.7 percent in the year to date.

The Sunderland-based group highlighted the trend for substantial increases in passenger numbers on public transport, as rising fuel prices persuade more people to abandon their cars for trains and buses.

Finally, National Express Group — which operates the East Coast Main Line and Anglia rail franchises — said sales on its network rose nine per cent overall in the five months to 31 May.

On the East Coast route, which National Express took over last year, sales were 11 per cent higher than the equivalent period in 2007.

NEG said its full-year profits are expected to be significantly ahead of last year.