DEUTSCHE BAHN EXPECTS TO LOSE 13B EUROS IN 2020
The German government's rail commissioner, Enak Ferlemann, expects the coronavirus pandemic to cost Deutsche Bahn at least 13 billion euros (16 billion dollars), Deutsche Presse-Agentur (dpa) reported.
A loss of 13 to 14 billion euros was calculated as the worst-case scenario at the beginning of the pandemic, Ferlemann told the Welt newspaper in comments published Saturday. "In the meantime it has become clear that it will not come down to our best-case scenario, but to the worst."
If coronavirus restrictions last longer, he said, the financial fallout could become even greater. "If we continue to have massive restrictions throughout January, February and March, or if measures are still necessary next autumn, then we'll have to look at what the impact will be."
This week, the Bundestag had raised the debt limit for the government-owned group from the previous 30 billion to 35 billion euros until the end of 2021. According to earlier information from company sources, Deutsche Bahn expects a slump in sales and a loss of 5.6 billion euros this year.
The dramatic decline in passenger numbers due to the pandemic is a major problem for the group, and the freight division and international sector is also bleeding cash. The latest word from the company itself is that coronavirus-related losses of up to 9.6 billion euros are expected by the end of 2024.