German rail operator Deutsche Bahn (DB) has reported a “boom” in demand for rail travel across the country after posting an operating profit of €331 million for the first half of 2023.
In a statement on Thursday (27 July) DB reported demand for regional, local and long-distance rail transport had increased “by double digits” compared to the first six months of 2022.
More than 808 million passengers took regional trains in Germany in the first half of 2023, up 11.5 per cent compared to 2022. More than 68 million passengers took DB's long-distance trains in the same period, marking an increase of 15.4 per cent or 9 million passengers.
Rail passenger volume, which takes the length of journeys into account and is measured in passenger kilometres, also saw substantial year-on-year growth.
At roughly 21.7 billion passenger kilometres, DB’s long-distance services “far exceeded” H1 2022 levels – which amounted to 18.3 billion passenger kilometres – and surpassed the previous half-year record set in 2019. The long-distance division improved its operating profit in the first half of 2023 by more than €130 million.
"We aren't even close to tapping the full potential for demand," said Richard Lutz, chairman of the management board and DB CEO. "That is good news for DB and for the climate.”
“The support for rail shows us that continuing to invest in more climate-friendly rail transport is crucial, even in challenging times. At the same time, we are committed to increasing our profitability,” he added.
Despite the record volume, DB’s operating profit for the period was 62 per cent lower than H1 2022 due to ongoing inflation and falling freight rates, as well as investments the company made on maintenance and to improve infrastructure.
DB's freight division DB Cargo also reported a loss, with the group’s Integrated Rail System posting an operating loss of €339 million.
Adjusted revenues for the period totalled €25 billion, compared with €28 billion in 2022, and as a result of lower global freight rates and continued inflation, DB expects a full-year operating loss.
"Despite the difficult financial situation, we greatly increased our spending for a better infrastructure,” said CFO Levin Holle. “This will be a one-time injection until the higher funding from the Federal Government that has been announced takes effect next year."
The group said construction and rail modernisation efforts are “at record levels” throughout Germany, which caused punctuality in long distance rail transport to fall to 68.7 per cent in the first half of 2023, down from 69.6 per cent in 2022.