No need to guess. The accounts have been published on Companies House website this week, and show a loss of £1.8m on turnover of £9.1m.
I wonder what %age of that £9.1m came from ScoGov by reimbursement of concessionary travel ?90%?
The concessionary fare system in Scotland is a classic example of the law of unintended consequences. It included coach travel because in many rural areas the coach also provided a bus service For example if you live in Inveraray and need to go to Lochgilphead (supermarket, doctor, hospital school etc) the coach provides your bus service. The extension to under 22s was to make it cheaper from young people to get to work or college. It can never have been the intention to subsidise Intercity express services travelling nonstop between Perth and Inverness or Dundee and Aberdeen. The operators are (quite legitimately ) gaming the system.
I would argue that concessionary fares should only be available on services which genuinely provide a frequent-stop, turn-up-and-go bus service in addition to their end to end traffic. At present there is one daily coach between Perth and Inverness which goes through every village en route. It's the only one which provides any sort of bus service. Similarly, only Perth to Aberdeen services which leave the A90 to go through Forfar Brechin Laurencekirk and Stonehaven would be providing a bus service.
It's just occurred to me that many, possibly most, concession holders are booking their seat online. As an online booking, the operator should only be reimbursed the online fare.
As others have said it's crazy that the ScoGov is subsidising coach services which compete with their own subsidised trains. But we have elections next May so no hard decisions will be taken.