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Crisis-hit German rail operator reports another massive loss

Years of chronic underinvestment have left the train network in Europe's biggest economy in a sorry state, with passengers frequently complaining of long delays, cancelled trains and poor service. State-owned Deutsche Bahn booked a net loss in 2024 of €1.8 billion, although this marked an improvement from a loss of €2.7 billion the previous year, while sales were flat. It shed some debt but is still saddled with a hefty €32 billion, which has built up over the years. "Deutsche Bahn is facing its most serious crisis" since major railway reforms of the mid-1990s, said CEO Richard Lutz. "We are far from achieving our goals and far from meeting our customers' expectations in key areas." The "poor condition" of infrastructure weighed heavily, as did strikes by train drivers at the start of the year and the weakness of the German economy, which has been in recession for the past two years, the operator said. Train delays -- a constant gripe of German rail passengers -- also become more even more frequent in 2024, with just 62.5 percent of long-distance services arriving on time. READ ALSO: Deutsche Bahn pays out compensation to millions of rail passengers in Germany The task ahead is colossal, with around €150 billion needed for improvements to the existing network as well as new projects, Deutsche Bahn said. But Lutz insisted that a turnaround was underway, pointing to huge investments in infrastructure last year and an ongoing restructuring plan, which will involve thousands of job cuts. Advertisement He also hailed a plan to establish a €500 billion fund to overhaul Germany's creaking infrastructure, which was pushed by chancellor-in-waiting Friedrich Merz and voted through parliament last week. The fund, to be spent over 12 years, is "part of the solution" as it provided "economic security" for the rail industry, he told a press conference. READ ALSO: What's in Germany's giant spending package? "We can send the signal to the railway and construction industry to build additional resources now, invest in additional machines, and also in additional people." The outlook for this year was already rosier than 2024, the operator insisted, forecasting an increase in sales, a positive operating profit and a fall in debts. Richard Lutz, CEO of Deutsche Bahn, takes part in a presentation of ICE-4 trains in Cottbus. Photo: picture alliance/dpa | Patrick Pleul Plans to reform the railways The centre-right CDU and CSU, which came top in Germany's February elections, are currently thrashing out a coalition agreement with the centre-left SPD with the aim of forming a government by Easter. Most recently, a working group tasked with looking at transport and infrastructure pitched a number of reform proposals to party leaders. READ ALSO: What will Germany's likely new government do about the Deutschlandticket ? According to the paper, which was obtained by Handelsblatt, the parties want to push ahead with major infrastructure investments over the coming years, including the refurbishment of 41 high-performance corridors that was intiated by the previous government. Advertisement This would be financed by a special rail infrastructure fund, drawn from the €500 billion financial package. According to the draft, the government wants to reform the railways to improve the quality of rail transport, ensure government money is going to the right places, and secure jobs in the long-term. However, Lutz's job could well be for the chop as the parties set out plans to restaff top management at Deutsche Bahn. With reporting by Imogen Goodman