Shares in Trainline (LSE: TRN) closed 2.9% higher at 283.00 pence on Thursday after the UK government confirmed it will no longer pursue plans to develop a ticketing website and app under its Great British Railways proposals.
At the open on Friday shares surged 15% and were trading at 327.50 pence by 09:30 GMT.
The transport department had originally floated the idea of a state-owned national rail ticketing portal in May 2021, sparking a 23% share price slump for Trainline. But ministers have now backtracked, pledging to “focus on opening up railway data and systems” instead.
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This should lower barriers to entry for independent retailers like Trainline and “make things better for passengers,” the department said. Train operators will continue selling tickets online alongside third parties, with the aim of boosting competition.
Despite the policy U-turn, Trainline shares remain 14% down since plans for a government-run ticketing app were first announced. Following the latest announcement the stock has clawed back some losses and is up 18% year-to-date. Hopes now are that the travel app can regain market share following this decision.
