Germany's Deutsche bahn railways widen net loss to $2.6 billion, sources say

Deutsche Bahn Expands Net Loss to $2.6 Billion Due to Train Delays, Outdated Railways

Financial Performance and Operational Challenges at Deutsche Bahn

Widened Net Loss and Contributing Factors

BERLIN, March 13 (Reuters) - Germany's Deutsche Bahn railways, which is struggling with chronic delays and outdated infrastructure, widened its net loss to 2.3 billion euros ($2.6 billion) last year due to problems at its long-distance division, sources told Reuters on Friday.

Impact of Persistent Delays on Long-Distance Division

Persistent delays affecting its hallmark white ICE trains forced the division to write down its value by 1.4 billion euros, said the sources familiar with the figures, who spoke on condition of anonymity because they are still confidential.

Company Response and Upcoming Press Conference

A Deutsche Bahn spokesperson declined to comment and pointed to the company's results press conference planned for March 27.

Operating Profit and Recent Financial Results

Its operating profit (EBIT) came in at 300 million euros, the sources said.

In 2024, the company's net loss amounted to around 1.8 billion euros.

Infrastructure Overhaul and Its Effects

Deutsche Bahn has embarked on a multi-billion-euro project to overhaul its many aging main lines, often closing complete sections for months.

Renovations and Compensation to Passengers

The renovations at its infrastructure division have had an impact on the train subsidiary because the company has to pay compensation to passengers over late trains.

Slower Growth in Train Subsidiary

The subsidiary is also expected to grow slower because fewer travellers are willing to take the train and often prefer travelling by car or plane to avoid delays and cancellations.

Additional Information

($1 = 0.8734 euros)

(Reporting by Markus Wacket, writing by Thomas Seythal, editing by Miranda Murray)