Bosses at Network Rail appear on track for further hefty bonuses after more trains arrived on time and half-year losses fell sharply.

Members of the executive team could get up to 30 per cent of their salaries if they deliver on punctuality, as well as cost efficiency and track standards.

Latest results from Network Rail show an average of 82 per cent of trains arriving on time - five per cent ahead of plan, although this may fall with the winter period still to come.

In June, chief executive John Armitt picked up £112,320 on top of his basic £450,000 even though the key punctuality target was missed. Since then the efficiency standard has been toughened.

The not-for-dividend company, which took on responsibility for rail infrastructure in 2002, said the 16 per cent reduction in delays had been the most encouraging part of its performance in the six months to September 30.

Efficiency improvements had helped turn operating losses of £95 million last year into profits of £225 million this time.