Transport for London (TfL) hit an operating surplus of £138m in the last financial year but investment in its network dipped amid a dearth in government funding.

In its financial report covering March 2023 to April 2024, TfL said capital enhancement had fallen from £1.36bn to £1.25bn year-on-year over what marked the first period it has operated without Covid-era grant funding from government, says CityAM.

The fall in investment came despite passenger journeys seeing “significant growth” on Tube and rail and ridership on the Elizabeth Line reaching 700,000 journeys per weekday. Passenger income rose by almost £300m when compared with 2022/23.

London’s transport operator has faced a cash crunch ever since the pandemic decimated passenger and commuter numbers on the tube.

Journeys have recovered since but are still at 88 per cent of pre-pandemic levels and the body has relied on over £6bn in government bailouts since 2019.

It received another £250m in December but has called on government repeatedly for a longer-term capital funding settlement, to no avail.

Key government infrastructure advisers from the National Infrastructure Commission warned in May the £250m injection was a “sticking plaster” and would “not be sufficient” in the long run.

Despite hitting an operating surplus, TfL argues it needs the extra money to fund a slew of critical upgrades across its network.