CEO Richard Lutz has declared that Deutsche Bahn is facing its most significant crisis since the rail reform, with long-distance punctuality plummeting to a historic low of 62.5% in 2024.

This decline in punctuality has resulted in a sharp drop in long-distance travel passengers, causing operational losses to soar from 43 million euros to 96 million euros.

The company's infrastructure is described as dilapidated and overloaded, creating a substantial gap between performance expectations and reality.

Despite record investments of 18 billion euros in 2024, Deutsche Bahn estimates that it will require an additional 150 billion euros by 2027 to address its infrastructure needs.

To combat these challenges, Deutsche Bahn has initiated a comprehensive restructuring program named 'S3,' which includes significant staff reductions, targeting a decrease of about 10,000 employees by the end of 2027.

Additionally, the European Commission has mandated that DB Cargo, the freight arm of Deutsche Bahn, must achieve profitability by the end of 2026, prompting ongoing restructuring efforts.

In 2024, Deutsche Bahn reported a substantial loss of 1.8 billion euros, although this was an improvement from the previous year's loss of 2.7 billion euros.

While DB Regio, another subsidiary, reported an operational profit of 108 million euros, DB Cargo continues to struggle with significant losses, transporting nine percent fewer goods than the previous year.

Looking ahead, Deutsche Bahn aims to improve long-distance punctuality to between 75% and 80% by 2027, with an immediate goal of achieving 65% to 70% on-time performance in 2025.

With over 6.5 million daily users, the urgency to address ongoing service issues is paramount for Deutsche Bahn's reputation and operational viability.

Despite the financial turmoil, CEO Richard Lutz's compensation rose to approximately 2.1 million euros in 2024, reflecting a significant increase in bonuses, which raises questions about executive accountability during this crisis.