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Demand Soars for Deutsche Bahn: Record Volumes in Rail Travel amid Economic Headwinds

Demand Soars for Deutsche Bahn: Record Volumes in Rail Travel amid Economic Headwinds
photo: Deutsche Bahn AG / Volker Emersleben/Demand Soars for Deutsche Bahn: Record Volumes in Rail Travel amid Economic Headwinds
16 / 08 / 2023

Despite the roller-coaster ride of 2023’s economic challenges, it seems Germans have never been keener to jump on a train. The Deutsche Bahn tracks have been busier than ever, with passenger demand zooming up in double digits. And what's fueling this rail renaissance? Well, the newly introduced Germany Ticket seems to have struck a chord, clocking in 11 million local public transport subscriptions in just its first two months.

However, on the financial front, while DB did pocket an operating profit of EUR 331 million in the first six months, it's a shade paler compared to the more robust figures of last year.

Blame it on global economic headwinds and some big-ticket investments in sprucing up the rail infrastructure. But as Dr. Richard Lutz, the CEO of DB, points out, "We aren't even close to tapping the full potential for demand. That is good news for DB and for the climate."

He also added: "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."

And it's not all cloudy skies. DB's logistics arm, DB Schenker, seems to be having a moment, reporting a healthy EUR 626 million operating profit in the first half of the year. Back on the home track, whether commuting to work or setting off on a long-distance adventure, Germans are voting with their feet. The numbers tell the tale: an impressive 11.5% more passengers on regional trains and a whopping 15.4% surge on the long-distance front. As DB chugs ahead, with CFO Dr. Levin Holle at the financial helm, one thing's clear: efficiency and innovation are the order of the day.

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