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London Underground Reports 19% Passenger Drop Due to Coronavirus

London Underground Reports 19% Passenger Drop Due to Coronavirus

(Bloomberg) --

Transport for London has reported an “acceleration in the reduction in passenger numbers” to around 19% on its underground service, as growing numbers of businesses and individuals have changed their travel behavior on coronavirus concerns.

The transport agency stated that in the week starting March 2, further reductions in ridership became apparent. It started with a modest decline and then led to an acceleration in reduction to around 19% on the underground and 10% on buses compared to the same week in the previous year.

The financial impact is “difficult to predict”, according to a statement published Monday morning, depending on the duration and severity of the coronavirus spread. The current forecast from TfL, based on government scenarios, suggests an impact of up to 500 million pounds in income. TfL said its current cash balance of over two billion pounds is “well above the required minimum” and allows the initial impact of the virus to be managed.

The transportation authority had already been dealing with challenges from the loss of a government grant and delays to its Crossrail project. Last week, a London Underground train driver tested positive for coronavirus.

The agency will consider further measures, such as budgetary flexibility, “to ensure it maintains its financial resilience”.

To contact the reporter on this story: Rebecca Smith in London at rsmith599@bloomberg.net

To contact the editors responsible for this story: Sunil Kesur at skesur@bloomberg.net, Tiago Ramos Alfaro

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