NS to Increase Train Ticket Prices by Over 11% in 2025 Due to Financial Losses
NS to Increase Train Ticket Prices by Over 11% in 2025 Due to Financial Losses
Price hike and job cuts planned to offset financial losses and maintain service quality.
Dutch railway company NS will raise train ticket prices by more than 11% in 2025 due to financial losses. This increase includes an 8.7% fare hike plus inflation, projected at 2.5%, following a 109 million euro operational loss in the first half of 2024. The move comes after NS froze prices in 2024, thanks to a 120 million euro government subsidy, which will not be available next year.
NS plans to cut 500 head office jobs by not replacing departing employees to offset the financial deficit. Despite a 6.4% rise in passenger kilometres, traveller numbers remain below pre-pandemic levels, largely due to the shift towards remote work.
In 2023, NS posted a 191 million euro loss, improved from the severe losses of the pandemic years, but still below pre-COVID profitability. The company's debt now stands at 1.1 billion euros. Although revenues rose by nearly 14.5% to 3.823 billion euros in 2023, passenger travel kilometres were still 11% fewer compared to 2019.
NS's financial chief, Angelique Magielse, noted the necessity of maintaining the high-quality Dutch train service, even as costs rise. The planned ticket price hike aims to address the "indexation gap" from previous years and align fees with inflation and operating costs. However, the increases will not affect operational jobs.
In addition to domestic challenges, NS's international arm saw a 15% rise in ticket sales, driven by the demand for sustainable travel. Despite these gains, the company faced many train delays last year, issuing over 288,000 compensation claims for delays, totalling 3.1 million euros, and additional claims for alternative transport.