The rail, bus and coach operator said it planned to use “innovative pricing” to help offset soaring oil prices.

National Express, which includes the East Coast rail service among its operations, said it expected “significant” year-on-year earnings growth for the half-year and full year results.

It said it hoped to benefit from the switch to public transport amid sky-high petrol prices.

The firm stressed that fuel costs – which have weighed heavy on stock market-listed transport firms – represent a fraction of total revenue, at 5% for its trains, 14% for coaches and 10% for buses.

National Express has also “hedged” itself against rising oil prices for 100% of its fuel needs this year and 47% for 2009.

National Express said passenger revenues at its trains business rose by 9% in the five months to May 31. The East Coast line – connecting Yorkshire with London and Scotland – lifted revenues by 11%.

Revenues rose by 7% for its bus operations and 5% for its coach arm while the company said revenues rose by 10% across its North American operations and by 5% in Spain.

Today’s update follows a strong set of results in 2007 when National Express lifted annual profits by 11% to £205.6m. The company has already achieved £11m a year in cost savings and pledged to continue that trend.