The aviation services unit, which operates cargo and parking services at airports, has been hit by falling demand for air travel. To cut costs, it exited Dublin Airport last week, with the loss of 70 to 80 jobs, and may pull out of some of the other 15 airports it services. Analysts expect the division to lose around £4m this year.

But while Go-Ahead is looking to make savings – it is cutting 300 jobs in its South East rail business and 450 in its baggage handling operation – it reassured staff that it was not planning further redundancies. The group, which employs 27,500 people, says that redundancy costs are expected to be in the region of £7.5m this year.

Shares in Go-Ahead have lost 13% of their value over the last year, but have increased by 28% over the last three months. They rose by more than 1% yesterday before sinking another 4%.

Analyst Arbuthnot said it retains its positive view of the company.