Stagecoach, the bus and train company stalking rival National Express, has confirmed early signs that the recession-hit industry is stabilising, as the decline in passenger numbers slows.

This follows in the tracks of rival Arriva, which said last week that income from ticket sales was rising on its CrossCountry franchise, which runs between Aberdeen and Penzance. FirstGroup, which is due to report on Wednesday, said in September that rail revenues in the second quarter had been relatively steady.