NAPERVILLE, Ill. Greyhound Lines has posted its second consecutive quarter of reduced earnings as passenger counts declined in large measure -- because of higher ticket prices.

Greyhounds parent company, Laidlaw International, said the nations largest line-run company had revenue of $271.3 million during the three months ended Feb. 28, down 7.7 percent from year-earlier revenue of $293.8 million.

For the first half of fiscal 2007, Greyhound revenue totaled $550.8 million, down 8 percent from revenue of $598.4 million for the six months ended Feb. 28, 2006.

Greyhounds gross earnings, or what Laidlaw calls EBITDA (operating income before depreciation and amortization), were $17.2 million for the three months ended Feb. 28, 2007, down 34.6 percent from a year-earlier EBITDA figure of $26.3 million.

For the first half of fiscal 2007, Greyhound EBITDA was $42.8 million, down 30 percent from first-half fiscal 2006 EBITDA of $61.2 million.

Top executives of Laidlaw attributed Greyhounds performance to several factors, but primarily to reduced passenger volumes that more than offset an increase in ticket prices adopted last year.

During 2006, Greyhound boosted ticket prices by nearly 11 percent. However, negative customer reaction to the price hike set in during the last several months. That factor, combined with bad weather and the loss of hurricane-related traffic from a year ago, reduced passenger volumes.

In early March, Greyhound began cutting ticket prices in areas where it experienced the biggest passenger drop-off. Price reductions in selected markets have averaged 3.5 percent, and represent an overall system-wide decrease of roughly 1.5 percent. Greyhound also stepped up marketing in the targeted markets.

Laidlaw executives say the impact so far from the price reductions and expanded marketing has been encouraging, with a noticeable increase in passengers.

Higher insurance costs of $4 million and increased fuel costs also bit into the fiscal 2007 second-quarter results.

On a consolidated basis, Laidlaw reported a revenue gain for the quarter and six months ended Feb. 28, compared to a year earlier. However, net income for both periods was down significantly.

Laidlaw reported net income of $18.5 million for the quarter ended Feb. 28, down from $34 million a year ago. For the six months ended Feb. 28, net income was $58.6 million, down from $92.3 million in the prior year.

During the second quarter, Laidlaws school bus operation completed the acquisition of Langdons Coach Lines of King City, Ont. Langdons, which has about 200 school buses and one motorcoach, operates in Ontario and Quebec. It was founded in 1929 by B.J. Langdon and changed hands in 1961 and again in 1976.

Most recently, the principals have been Geoff Galway, president, and Gary Kennedy.