Deutsche Bahn’s Trains Run Late, CEO’s Pay Runs High

Deutsche Bahn's Trains Run Late, CEO's Pay Runs High

The Deutsche Bahn’s punctuality issues are nothing new, nor are its financial losses. The question is, how much and at what cost? In 2024, only 62.5 percent of long-distance trains arrived on time, with more than a third failing to meet the expected deadlines. This is despite the company’s efforts to manipulate the statistics, such as counting trains that terminate at a different station as not being late.

The company’s financial performance is also under scrutiny, with a loss of 1.8 billion euros in the previous year. However, the government has already injected 1.8 billion euros into the company’s infrastructure and the logistics subsidiary Schenker was sold. The company’s freight division, DB Cargo, reported a loss of 357 million euros, which the EU has classified as a state aid, prohibited under EU rules, unless the company becomes profitable by 2026 or is placed back under direct state control.

The company’s passenger division reported a loss of 96 million euros, with delays and other issues driving away customers. The regional division, however, reported a profit of 108 million euros. The company’s infrastructure is considered marred and overused, with the problems extending beyond the physical state of the network to the company’s complex and sprawling structure, which has developed since privatization.

The company’s plans to restructure and downsize, including the elimination of 30,000 jobs by 2027, are also under scrutiny. The company’s CEO, Richard Lutz, received a salary of 2.1 million euros in 2024, a figure that stands out in contrast to the company’s financial struggles.