Bus operator Stagecoach, which is looking to merge with National Express, has reported a recovery in demand since the easing of Covid restrictions in January.

The Perth-based group said journeys across its regional business ranged between 70 and 78 per cent of pre-Covid levels in the first half of February, before the onset of poor weather. It expects to see further recovery beyond April, although uncertainties remain in relation to passenger demand, government support payments, and cost inflation.

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The firm welcomed recent pledges of further recovery funding for transportation services from the UK and Scottish governments, adding that it is on course to meet its trading expectations for the year to April 30. Both its regional and London bus businesses were said to be performing broadly in line with expectations.

In December, Stagecoach announced that it has agreed an all-share takeover by rival National Express. The deal is currently under investigation by the UK’s competition watchdog.