Berlin, July 25, 2024, The Europe Today: Germany’s national rail operator, Deutsche Bahn, reported a significant loss of over €1.2 billion (approximately $1.3 billion) for the first half of 2024, according to the group’s half-year report released on Thursday. This loss is markedly larger compared to the same period in 2023, which saw losses of €71 million.
Financial Performance and Revenue
Deutsche Bahn’s revenue for the first six months of 2024 was €22.31 billion, a 3% decrease from the €23 billion recorded in the first half of 2023. The considerable bottom-line loss of €1.231 billion from January to June this year highlights the financial challenges the company faces.
Passenger Trends
The report indicates a decline in the number of passengers traveling on long-distance trains, with 64.2 million travelers in the first half of 2024, a 6% drop from the same period last year. However, overall passenger numbers increased by 4.2%, driven by the popularity of the €49 monthly Deutschlandticket for regional and local routes, introduced last year. This ticket allows unlimited use of all public transport, as well as regional and local trains across the country.
Contributing Factors to the Loss
Deutsche Bahn CEO Richard Lutz attributed the financial shortfall to several factors, including strikes, extreme weather events, and the dilapidated state of the rail infrastructure. These issues have exacerbated operational challenges and financial strains in both passenger and freight transport.
“Extreme weather events on an unprecedented scale have pushed the rail infrastructure, which was already in need of renovation, to the limits of its capacity and exacerbated the operational and financial situation,” said Lutz. “In addition, there were strikes and accidents.”
Future Outlook and Government Support
Despite the current challenges, Deutsche Bahn expects to return to profitability later this year, bolstered by a one billion euro repayment from the federal government for advance payments on line renovations. The company aims to achieve profitability across all business areas, from freight rail to long-distance transport.
Job Cuts
In response to the financial strain, Deutsche Bahn announced plans to cut approximately 30,000 jobs, primarily in administration, over the next five years. Chief Financial Officer Levin Holle stated, “We must achieve more railway with fewer people in future.”
UEFA European Football Championship Impact
The 2024 UEFA European Football Championship, held in Germany from June 14 to July 14, highlighted Deutsche Bahn’s operational problems, with train breakdowns and overcrowded platforms making international headlines and causing significant inconvenience for football fans. The negative coverage in foreign media was particularly embarrassing for a country once renowned for its precision, punctuality, and top-quality infrastructure.
Deutsche Bahn remains focused on overcoming these challenges and enhancing the reliability and efficiency of its services to meet both national and international expectations.
