An increase in customer numbers and the addition of several new services helped Bus Éireann to achieve a surplus of more than €1.5 million last year, a turnaround from the €9.4 million deficit recorded in 2002.

The company's turnover rose from €202 million in 2002 to about €218 million in 2003. The number of customer journeys increased to about 92 million in 2003 - about 50 million excluding school bus journeys - from 89 million the year before. The €1.5 million surplus was produced after receiving a State subvention of upwards of €20 million, believed to be a similar level to 2002.

While 2003 appears to have been a strong year for the company, it has warned that traffic congestion continues to adversely affect its financial position.

A study by BDO Simpson Xavier found that traffic congestion adds about €19 million to the company's annual costs. The average speed of buses in Irish cities is now well below the international average of 23.1 km.

The growth of bus transport throughout the State has benefited the company significantly. Bus Éireann now operates a wide network of intercity, commuter, city and rural services. Growth rates over the past five years have been significantly higher than elsewhere in Europe.

The company's accounts are due to be approved shortly by the Government. They are believed to show that, while a 2003 profit was produced, the company's profit and loss account includes accumulated losses at the end of 2003 of more than €10 million, down from €12 million the year before.

Cost control at the company has improved in recent years and it is understood payroll and other costs were down slightly in 2003 to about €102 million. Staff numbers have remained relatively static in the past few years at about 2,700.

In some rural areas, the company sub-contracts out bus services to private operators and this is believed to have cost almost €70 million in 2003.

There were about 21.4 million provincial city journeys in 2003, up from 20.9 million the year before. The number of journeys on scheduled services also grew from 25.1 million to about 27 million. The company also operates a school bus service on behalf of the Department of Education, which involved about 43 million journeys in 2003.

It is understood that, since 1998, customer numbers on Expressway and commuter routes have increased more than 40 per cent. Bus Éireann claims it has now achieved customer satisfaction rating of 91 per cent.

A range of services were added in 2003, including four direct services daily between Galway and Shannon Airport and additional services on the Dublin/Clonmel, Dublin/Ballina, Dublin/Sligo and Cork/Kilkenny routes.

A high-frequency commuter service was introduced on the Dublin/Ashbourne route. New services were introduced between Athlone/Dublin and Athlone/Galway. The service from Cork city centre to Wilton was extended and service frequencies to Carrigaline and Midleton were also increased.

The company introduced an e-ticketing service last year. It also claims that 92 per cent of its buses are wheelchair accessible.