Deutsche Bahn Group (DB Group) reported an adjusted EBIT of -€677 million for the first half of 2024, reflecting significant operational challenges. The group's net loss after taxes reached €1.2 billion, a considerable increase from the €71 million loss recorded in the same period last year.
DB Group's core business, the Integrated Rail System—which includes mobility, rail freight, and rail infrastructure—experienced a substantial operating loss of €1.2 billion, a marked decline from a €339 million loss in the first half of 2023. Group revenues fell by 3%, amounting to €22.3 billion.
In the face of these challenges, DB Group increased its capital expenditures in the rail network and services, supported by increased Government funding. Net capital expenditures rose by 35% to €4 billion, while gross capital expenditures reached €7.3 billion, an 18% increase. Despite the losses, DB Group aims to improve its EBIT in the Integrated Rail System by about €2 billion in 2024, relying partly on new Government support for infrastructure maintenance.
DB Group's logistics subsidiary, DB Schenker, continued to contribute positively with an operating profit of €520 million, but this was not enough to offset losses in the core business.
DB Group's rail freight unit, DB Cargo, transported about 93 million tons of freight, a 10.2% decrease, and recorded an operating loss of €261 million.
The rail network's failure-prone infrastructure, high levels of construction, and decreased punctuality (62.7% in long-distance service) significantly affected performance and revenues. Long-distance train kilometers fell by 1.8% to 548 million train-path kilometers. DB Fernverkehr saw a 6% decline in passenger numbers and a 3.6% drop in volume sold, leading to an operating loss of €232 million.
DB Regio benefited from the Germany-Ticket, with passenger numbers increasing by 6% and rail volume sold rising by over 17%. Revenues increased by €283 million to €5 billion, although the unit still posted a slight operating loss of €66 million.
Looking ahead, DB Group plans to focus on modernizing the Riedbahn line between Frankfurt am Main and Mannheim, the first project in a broader plan to transform Germany's network. The group expects capital expenditures to continue rising, with full-year gross capital expenditures projected at about €21 billion and net capital expenditures at approximately €11 billion. Despite the challenging first half, DB Group maintains its outlook for an operating profit of around €1 billion for the year, dependent on operational conditions and Government funding.
