Editor in chief at IamExpat Media
Germany’s national rail operator, Deutsche Bahn, has announced that its books were once again deeply in the red in 2024. As well as posting a billion-euro loss, the company also reached a historic low on train punctuality.
Deutsche Bahn posted a loss of around 1,8 billion euros in 2024, according to new figures released this week. Although a loss is still a loss, the figure is about 1 billion euros better than the 2023 loss of 2,7 billion euros. The company has posted a loss every year since 2020 - before that, it was turning a profit of around half a billion euros per year.
The company now sits on top of a total debt of some 32 billion euros, some of which it hopes to pay off by selling the high-performing logistics subsidiary DB Schenker to its Danish competitor DSV.
"The DB Group's economic performance in 2024 was primarily shaped by the poor condition of its infrastructure," the company said in a press release. "The strikes by the train drivers' union GDL in the first quarter of 2024 and the weak economic situation, particularly in rail freight transport, also had a negative impact."
At the same time, punctuality in long-distance transport in Germany hit a historic low, with just 62,5 percent of trains arriving on time.
Deutsche Bahn CEO Richard Lutz - who took home a significantly increased salary of 2,1 million euros in 2024, including bonus payments - said that the railway company was facing its “biggest crisis since the railway reform… In key areas, we are far from achieving our goals and what our customers expect from us.”
With a comprehensive restructuring plan focusing on operations, infrastructure and finance, Deutsche Bahn is hoping to turn the tide within the next few years. Huge modernisation projects are already underway, and the company is cutting thousands of jobs, primarily in its administration division. Deutsche Bahn says it aims to increase its punctuality rate to 80 percent by 2027 and return to earning a profit this year.
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