Canteen and restaurant giant Compass has become the latest firm hit by the air travel slide, and of stagnation in the UK's accident-hit rail industry.

Compass, the world's biggest foodservice firm, warned that trading since the spring had been "more challenging in a number of countries".

The company, which owns brands including baguette chain Upper Crust and the Harry Ramsden's fish and chip restaurants, said that the aviation slump since last year's 11 September attacks had hit revenues at its airport outlets.

UK takings had been hit by "flat" rail passenger numbers following crashes at Hatfield and Ladbroke Grove.

Rail watchdogs this month warned that the performance of the UK's rail services was still "significantly lower" than before the Hatfield crash in October 2000.

But Compass said that, group-wide, it was on track to achieve 6% growth this year.

Growth in the UK was set to hit 5%, with European and North American operations achieving 7% expansion.

New contracts

Compass said that its success in winning new deals, and retention of more than 95% of existing contracts, had helped it offset revenue "pressures".

The firm said its Eurest arm had on Friday won a contract, worth �4.5m a year in turnover, to provide catering for mobile phone operator Orange.

Eurest will serve 10,000 Orange staff at 11 sites.

Other recent deals won by Compass divisions include a five-year deal by the Bon Appetit business at the Massachusetts Institute of Technology.

In Europe, the SSP Sweden division has won a 2.5 year extension to its �23.5m a year a contract with SJ, Sweden's biggest rail operator.

Compass shares stood up 8p at 291p in afternoon trade in London on Friday.