The company which runs the Gatwick Express rail service said today that last month's terrorist attacks in the USA would hit profits.

Coach and train operator National Express said its Gatwick Express franchise was already being affected by the "significant decrease" in in-bound US traffic at the airport.

There has also been a reduction in leisure and discretionary travel on its other UK rail franchises since the September 11 atrocities.

The group's worldwide insurance premiums were also likely to double to £30 million as a result of the attacks.

National Express, which runs Silverlink, WAGN and Scot Rail in the UK, also has an extensive coach network in the USA and an operation in Australia.

Chief executive Phil White said the impact of the tragic events in the US had added to the problems caused by the ongoing disruption on the UK rail network.

There were still 700 speed restrictions in place following the Hatfield crash and these were affecting the reliability and punctuality of train services, he said.

Passenger numbers were now unlikely to bounce back above pre-Hatfield levels throughout the course of next year.

Mr White said: "The uncertainty following the events of September 11 has impacted our UK train operations, which also continue to be severely affected by the continuing effects of network disruption following Hatfield."