Richard Lutz, the CEO of Deutsche Bahn, has reported a significant revenue loss of 700 million euros in 2024, primarily due to delays, strikes, and construction work impacting the rail network. These disruptions have notably affected long-distance travel, reducing demand, especially among business customers. Compensation for passengers experiencing more than an hour of delay has also added to the financial burden, contributing to a projected loss for DB Fernverkehr in 2024.
Lutz had initially set a target of 70% punctuality for long-distance trains in 2024. However, this goal will not be met, with punctuality falling below 65% as the year ends. The outlook for 2025 remains cautious, with no promises of achieving the 70% target. Nevertheless, Lutz assures that trains will run on time during the festive season, as construction activity is reduced to accommodate increased holiday travel.
The challenges facing Deutsche Bahn have prompted broader strategic measures, including a plan to reduce personnel by 30,000 positions and initiate a comprehensive renovation of the Hamburg-Berlin line, backed by 2.36 billion euros in federal funding. The company aims to improve punctuality to a range of 75-80% by 2027 through its "S3" program. However, these efforts indicate ongoing struggles to enhance operational efficiency and service reliability amid mounting financial pressures.
