Soaring energy prices quadruple Czech Railways’ loss, CD Cargo remains in the black
The loss of the entire Czech Railways group for the first half of the year is four times greater than last year.
Czech Railways’ (CD) core business is significantly more loss-making this year than last. The carrier closed its passenger transport business with a loss of EUR 50 million in the first half of 2022. Last year it lost EUR 24 million in the first six months.
The reason for the drop is the unprecedented increase in energy prices. Despite the return of passengers, the entire CD group lost EUR 38 million compared to EUR 9 million last year. The data was published in a semi-annual report today. The year-on-year increase in expenditure on services, energy, and materials for passenger and freight transport was EUR 94 million.
CD is now struggling with the reimbursement system set up in contracts with the regions and the Ministry of Transport, i.e. the CD public transport contractors. The increase in input prices won’t be reflected until 2023 payments; the difference between real costs and payments from the regions and the state is now significant.
More than double the increase in fare revenue
Revenue data document the return of passengers. Year-on-year, revenue from ticket sales rose by EUR 85 million to almost EUR 163 million. In the first six months of 2022, 75 million passengers used CD trains (a 25-million increase YoY). Transportation service grew and, thanks to the recovery in international transport, the average transport distance increased to 48 kilometers (an 8-km increase YoY).
The positive performance of some subsidiaries reduced the group’s overall loss. Despite the impact of high energy prices and the consequences of the conflict in Ukraine, CD Cargo turned a profit of EUR 5.1 million midyear. CD Cargo revenues increased by EUR 26 million year on year.
Edited and translated by Lucie Trávníčková.