Dutch Railways (NS) returned to profit in its passenger transport division last year for the first time since 2019. The rail operator attributes the improvement to higher fares for both single tickets and season passes, along with a modest rise in passenger numbers and ongoing cost‑cutting measures.
These factors resulted in a modest profit of €11 million. This reflects the underlying operating result, excluding one‑off gains or losses. By contrast, the company posted a loss of €141 million in 2023.
Despite the return to profit, NS says the result is still not sufficient to ensure long‑term financial health. Passenger numbers dropped sharply during the coronavirus pandemic and have not fully recovered. Hybrid working remains a major reason why fewer people travel by train than before the pandemic.
Investments and financial position
For several years, NS generated less revenue than it needed to cover its costs. At the same time, the state‑owned company invested hundreds of millions of euros annually in trains, staff, and stations. As a result, its debt has risen to more than €1.2 billion.
NS stresses the importance of maintaining profitability in its core operations. The company is implementing a programme to achieve €200 million in structural cost savings, €60 million of which was realised last year. Measures include reducing office staff and cutting IT and consultancy expenses.
Reliability and performance
NS reports that trains ran on time more often last year than in the previous year. Additional trains and staffing improvements also reduced the number of standing passengers during peak hours. Long‑term speed restrictions on the high‑speed line have now been incorporated into the timetable.
More than 85 percent of train journeys arrived with less than three minutes’ delay, including cancellations. This meets the “baseline” performance level agreed with the government in the new main‑rail‑network concession, though it remains below the target set for 2029. These performance indicators determine whether NS receives a bonus or must forfeit part of its concession payment.
The company acknowledges the improvement in reliability. However, passengers should expect more disruptions in the coming period due to extensive infrastructure works carried out by ProRail, which increasingly take place during daytime and weekends.
@anp | NEWS BRAINPORT
