Perth-based transport group Stagecoach enjoyed revenue growth in all divisions over the last quarter except US operations.
The performance across the Atlantic was offset by strong trading across all bus and train operations in the UK, and the group said it was on course to meet expectations for the year.
Shares in Stagecoach fell 8 pence to 366.2p yesterday, however.
Overall, like-for-like revenue in North America was down 5.3%, with the fall in fuel prices affecting demand for megabus.com intercity coach services.
Like-for-like revenue at megabus.com North America was 3.4% below last year’s level.
Passengers taking advantage of low fuel cost alternatives was one factor and another was the effect of low margin contracts ending during the prior year.
Stagecoach’s US sightseeing and other leisure-related businesses were affected by strong competition and the continued strength of the US dollar.
The group added: “We continue to see a number of ongoing challenges to growing profit in the division and its joint venture, Twin America, in the year ending April 30 2016.
“As a result, we have revised down our expectation of North America operating profit.”
Like-for-like revenue at Stagecoach’s UK Bus regional operations, including Tayside and Fife, was up 1%. Growth was affected by the timing of the school holidays but stronger growth is expected during August and September.
There was also optimism about megabus.com’s prospects in mainland Europe.
Trading at the UK Bus London showed a 1.5% revenue rise despite traffic disruption in the capital.
Revenue at UK Rail was up 5.5% with the performance including the new Virgin Trains East Coast franchise.
Virgin Rail Group’s West Coast franchise continued to perform strongly and produced a 7.5% revenue rise.
Stagecoach said it had maintained a strong financial position with investment grade credit ratings and appropriate headroom under debt facilities.
Consolidated debt increased from the previous quarter reflecting additional investment in the bus fleet, but overall current trading was satisfactory.