Financial results published this week present a mixed picture for Swiss Rail. For the first time in three years the company made a profit. After transporting an average of 1.32 million people a day in 2023, the company made a profit of CHF 267 million. The year prior it made a loss of CHF -245 million.
Every day, the company, which employs around 35,000 staff, moved an average of 1.32 million people and 175,000 tonnes of freight. However, despite these improved numbers and a profitable year the train operator’s debt load barely budged. It started 2023 at CHF 11.6 billion and ended at CHF 11.4 billion.
Debt was a problem before the pandemic and was made worse by it. Over the three years from 2020 to 2022 another CHF 1 billion was added to the debt balance as the number of travellers fell and operating losses accumulated.
The biggest financial challenge for Swiss Rail is its freight division. While the passenger business was profitable in 2023, freight continued to make a loss of CHF 40 million over the year.
Swiss Rail is heavily subsidised by the state. In 2023, 28% of its revenue came from the government, 40% from ticket sales and 32% from other lines of business such as leasing out its real estate.
In addition to the CHF 11.4 billion owed to external lenders, the company owes CHF 26.6 billion to the state, money that has been provided to invest in long term infrastructure.
The economics of rail transport are undeniably challenging. Train tickets cover a relatively small portion of the underlying costs. However, filling the gap with public money ensures Switzerland keeps rolling.
More on this:
Swiss Rail article (in French) – Take a 5 minute French test now
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