The German railways are in urgent need of a deep recovery, not only in terms of infrastructure, where large-scale maintenance work is already underway, but also on the economic front. This is the objective of the S3 program, aimed at returning to profitability by 2027, which will be discussed by the Supervisory Board on September 18, 2024. In the first half of 2024, revenues fell by three percent compared to the same period last year, reaching €22.3 billion, with a net loss after taxes of €1.2 billion (compared to €71 million in the first half of 2023). Strikes alone contributed to losses of €300 million. By the end of the year, revenues are expected to be €45 billion, two billion less than in 2023.
Deutsche Bahn has already taken steps to recover from these losses. The most notable action is the sale of part of the logistics division, DB Schenker, which, however, has been the division generating profits that have helped reduce the parent company's overall losses. The rest of the measures are detailed in a 110-page document circulating within the Group. A sensitive issue will be personnel costs, which are projected to reach €34.3 billion in 2024, significantly higher than the forecasted €28 billion. A reduction in staff was discussed in 2023, and the topic may resurface soon.
Meanwhile, the German government is demanding swift measures. At the beginning of September, Federal Minister of Transport Volker Wissing increased pressure on the railway company, particularly regarding efficiency, which has deteriorated in recent months due to maintenance works and other problems, such as a computer system failure that caused major delays in central Germany on September 7.
