Megabus parent company Coach USA files for bankruptcy

One of the biggest operators of private bus service in the United States filed for Chapter 11 bankruptcy protection last week. Coach USA runs a network of commuter services, mostly in the Northeast, as well as Megabus service throughout the U.S. It’s ridership fell early in the pandemic and hasn’t fully bounced back.

While airlines and cruises are again seeing record bookings, bus trips have continued to lag, according to Peter Pantuso, CEO of the American Bus Association.

“We lost somewhere between 40% and 50% of the industry,” he said.

The biggest hit has been to commuter services, he noted — typically between outer suburbs and city centers.

“People stopped going to work five days a week all of a sudden, and now they’re going maybe one day a week — if they’re going in at all,” Pantuso said.

Longer trips, like those from Megabus, have fared a little better, said Joe Schwieterman, a transportation professor at DePaul University. But domestic airfares are still relatively cheap, and the motor coach industry has struggled with driver shortages, rising labor and fuel costs.

“People are, like, super price sensitive, so they’ll take the bus, but don’t make the fare the same price as Amtrak or they’re gonna ditch, ditch you for the train,” Schwieterman said.

One bright spot in the industry is charter bus service, he noted. With spending on other forms of travel and leisure up, there’s more demand for tours and connections.