Passenger numbers on the flagship T1 service between Carmarthen and Aberystwyth increased by 65 per cent in the past year, an annual report outlines, despite Transport for Wales (TfW) lodging a deficit of more than £33m.

The annual report highlights that the T1 service between Carmarthen and Aberystwyth has seen an increase of 65 per cent in passenger numbers, while the Sherpa bus service operating in Eryri has seen an increase of 64 per cent compared with 2019.

In their latest Annual Report (2023/24), the not-for-profit transport organisation also revealed that “the introduction of 46 brand-new trains across the Wales and Borders network and timetable improvements have helped reduce cancellations and increase rail revenue figures”, while overall it has seen a 25 per increase in passengers using their TrawsCymru bus services.

For the 2023/24 financial year, TfW posted a deficit of £33.298m, following a deficit of £26.027m the previous year.

The losses are despite a 15 per cent increase in rail revenues.

James Price, Transport for Wales CEO said: “Over the last five years, we’ve been on a journey of transformation at TfW and we’re now starting to see the benefits of investments.

“With improved services and better trains, we’ve seen an increase in passenger numbers which has helped to drive up our rail revenue by 15 per cent.

“We’ll aim to maintain this upward trajectory as we continue to introduce more new trains as part of our £800 million investment, as well as making timetable adjustments.

“Our vision is to become ‘Wales’s favourite way to travel’ and we can do this through continuing our investment into an integrated public transport network.

“We’ve seen a 25 per cent increase in passengers using our TrawsCymru bus services and we recently opened the new Cardiff Bus Interchange, which will improve links between rail and bus.

“We’ve distributed £46 million in active travel funding which will improve local walking, cycling and wheeling routes improving local connectivity, and we’ve launched over 30 new walks from our railway stations across Wales.”

Natasha Asghar MS, Welsh Conservative Shadow Transport Minister said: “Labour-run Transport for Wales’ Annual Report makes for grim reading, given the huge sums pumped into the rail service and the massive losses reported.

“Revenue has not recovered to pre-Covid levels.

“In fact, staffing costs exceeded passenger revenue and redundancy pay outs, mostly for ill-health, have more than doubled in a year.”