ABERDEEN, Scotland As a result of lower gasoline prices during the second quarter of this year fewer folks climbed aboard Greyhound buses than during the first quarter when gas prices were higher, Greyhounds corporate parent, FirstGroup plc, reported last month.

Still, FirstGroup said it was "encouraged by Greyhounds performance" for the second quarter, which saw revenue increase 2.8 percent over the second quarter of last year.

The growth in second-quarter revenue for the nations largest line-run operator was down from a 4.2 percent increase during the first quarter of this year, when gasoline prices were higher.

When gasoline prices fall, many Greyhound customers switch from bus travel to automobiles.

FirstGroup also said it was particularly proud of the success of Greyhound Express, the city-to-city, limited-stop service Greyhound launched in September 2010.

Greyhound Express "continues to achieve higher growth," said FirstGroup, adding "we see significant potential to continue to develop these non-stop, enhanced bus services."

During the second quarter, Greyhound Express began operating in California and was expanded in Texas, bringing the service to nearly 70 markets across North America.

Generally, Greyhound Express provides short-distance, non-stop or one-stop service, originating at larger hubs.

Speaking at FirstGroups annual meeting here last month, Chief Executive Tim OToole also indicated satisfaction with the companys other North American operations, First Transit and FirstStudent.

At First Student, where operating margins have been squeezed by pressure on school budgets, "good progress has been made in addressing performance and strengthening the operating model. The business is now set on the path to recovery," said OToole.

At First Transit, the division "continues to perform well with trading in line with expectations. The business is generating good returns . . .."