In 2023 there will still be a loss of billions
Bahn gains a lot of customers with Deutschlandticket
February 28, 2024, 2:21 p.m
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Before its introduction, there was a long debate about whether a discounted Germany ticket would even be in demand. Current figures from Deutsche Bahn now make it clear: definitely. The group is seeing noticeably more passengers in local transport. Nevertheless, the railway is threatened with a big loss.
Because of the Deutschlandticket, significantly more passengers use Deutsche Bahn’s local transport. The ticket resulted in a 16 percent increase in passengers, said DB Regional boss Evelyn Palla. Around 60 percent of passengers travel with the monthly ticket for 49 euros, which is valid on local transport throughout Germany. However, this has practically no financial impact, said Palla. Many passengers have exchanged the conventional tickets for the cheaper Germany ticket. The federal and state governments compensate for losses in sales by the railways and other transport companies with around three billion euros per year.
DB Regio is the largest local transport operator in Germany and has over two billion passengers on the red trains, S-Bahn and buses every year. Local transport in Germany is subsidized to the tune of over ten billion euros annually in order to keep tickets affordable, especially for commuters. The federal states are tendering route networks for this purpose. The company that demands the lowest subsidies will be awarded the contract to operate for several years.
According to Palla, DB Regio won around 60 percent of the routes advertised last year. “We have thus succeeded in consolidating our market share.” DB Regio operates 60 percent of the routes. In recent years, DB Regio in Germany has been an important source of profits for the group. Recently, the regional division, like practically the entire business in Germany, slipped into the red.
According to Reuters information from corporate circles, the international logistics arm DB Schenker was no longer able to compensate for the losses in Germany in 2023. The railway will make a loss of over one billion euros in 2023, company representatives told Reuters.