German rail operator Deutsche Bahn aims to return to profit this year
BERLIN, March 27 (Reuters) - German rail operator Deutsche Bahn (DBN.UL) aims to make an operating profit this year as cost cuts and infrastructure investment start to pay off, the company said on Thursday after posting heavy losses in 2024.
Following more than a decade of under-investment, state-owned Deutsche Bahn has started upgrading its tracks, crossings and overhead lines and cutting administrative costs, a process that has caused major delays and cancellations across the country.
CEO Richard Lutz said while the turnaround had started, much still had to be done to pull Deutsche Bahn out of crisis.
"We are a long way from where we want to be and what our customers expect from us in key areas," said Lutz.
The company expects an operating profit this year and an increase in revenues to more than 27 billion euros ($29.08 billion), although forecasts depend on an uncertain geopolitical situation and the inflow of federal funds for infrastructure maintenance, it said.
As reported by Reuters earlier this month, Deutsche Bahn made an operating loss of 333 million euros in 2024, narrower than the previous year thanks to state payments for infrastructure maintenance.
Revenues were roughly stable last year at 26.2 billion euros and it posted a net loss of almost 1.8 billion euros.
($1 = 0.9283 euros)
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