Go-Ahead, the rail and bus operator, has seen pre-tax profits climb by a fifth as credit crunch-hit commuters opt increasingly for public transport.

The transport group, which carries 30 per cent of the UK's rail passengers and has the country's fourth biggest bus business, said that passengers were turning to buses or trains as the price of petrol has soared, particularly in the last quarter of its financial year.

Go-Ahead reported pre-tax profits before exceptionals up 19.1 per cent to £131.1 million for the year to June 28, on revenue up 20.4 per cent to £2.2 billion.

Sir Patrick Brown, chairman of the group, said: "Demand for our bus and rail services continues to rise as people change the way they travel, and our balance sheet and cashflows remain strong."

Although Go-Ahead said it was "mindful of the current economic uncertainty", it believed it was well placed for the year ahead and would continue to target growth organically and from appropriate acquisitions.

The chairman added that retaining the Southern rail franchise, which brings commuters from the South of England and the South coast into London Bridge station, was a priority for the group. The franchise has been combined with other services to form a new South Central operation, which will be awarded to one of a shortlist of operators, including Go-Ahead, next year.

On the buses, Go-Ahead said it had seen passenger growth of 2.9 per cent in the full year, with an increase of 4.9 per cent in the fourth quarter. It attributed the accelerating growth to the extension of free travel for pensioners across the country as well as passengers choosing to leave behind their cars, because of the high cost of fuel.

Fuel accounts for around 10 per cent of the bus company's costs and it has now hedged its requirements for the year to June 2009, in anticipation of fuel prices staying high. Drivers are also being retrained and monitored to make sure they keep fuel usage under control.

Go-Ahead's rail division has grown significantly since the company took over the London Midland franchise, which operates from Euston station, in November 2007 and the Gatwick Express franchise in June this year. The transport group now provides 30 per cent of all passenger journies.

It is also seeing sustained growth in passenger numbers on its established Southern and Southeastern franchises, up 6.7 per cent and 6.4 per cent respectively. This growth has resulted in a 13.2 per cent increase in passenger revenue on Southern trains and a 13 per cent increase in Southeastern.

The operating performance of the Southern franchise has also reached record levels, with 90.1 per cent of the trains arriving on timne.

The company's troubled aviation service division, which provides ground handling for the likes of British Airways and cargo services, has also seen a return to profit, after having been successfully restructured. Aviation saw a £5.3 million increase in operating profit, giving it a total operating profit of £1.5 million compared with a loss of £3.8 million last year.

Go-Ahead raised its full-year dividend by 15.7 per cent to 81p a share.

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