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Swiss state railways posts loss and plans cost-cutting measures

Railway ticket collector on a platform
The Federal Railways operates a network of 3,265 km and has about 34,200 employees. © Keystone / Christian Beutler

The state-run railway company says it made a loss of CHF245 million ($266 million) last year despite an increase in passengers.

The main reasons for the deficit are value adjustments as well as losses of the infrastructure and energy units, according to a press release by the Swiss Federal Railways on Monday.

The negative business result was notably due to the war in Ukraine, which led to higher energy costs and inflation-related higher prices and interest rates. Due to the low rainfall in the summer, the national railway company had to buy more electricity on the market, the report said.

Debts of the state-owned company rose by 2.5% last year – .an increase of more than 27% compared with 2019.

Cutting costs

However, the Federal Railways recorded a steady increase in passengers last year, but still short of the figures before the Covid pandemic.

The company has announced a cost-cutting programme worth CHF6 billion over the next six years. The package by the Swiss government is intended to sustainably secure financing until 2030 and reduce debts.

The Federal RailwaysExternal link operates a fully electrified network of 3,265 km in standard gauge and has about 34,200 employees.

+ Read also: why the company has fitted trains with video surveillance

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