Private high-speed train operator Iryo loses nearly 80m euros in midst of price war in Spain

Despite carrying six million passengers last year the Italian consortium is facing stiff competition from the French company Ouigo and Spanish state operator Renfe

Edurne Martínez

Madrid

Friday, 20 September 2024, 17:59

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Spain's transport minister Óscar Puente is convinced that rail travel in the country is living "its best moment", but the financial results of the three high-speed operators using Spain's rail network do not support that view. The Italian company Iryo lost over 79 million euros in 2023, its first full year operating in Spain, according to the annual accounts filed with Registro Mercantil (Spain's equivalent to Companies House in the UK). These results are much worse than the 25 million it lost in 2022, but that year it had only operated for a few weeks.

Moreover, Iryo's results are worse than those of both Ouigo and Renfe. The French company Ouigo, whose low-cost tickets have been criticised on many occasions by the transport minister for "dragging other operators into losses", itself lost 42.7 million euros in 2023, while Renfe Viajeros had 65 million euros in losses, although these are not yet their final, consolidated accounts.

The Italian company's revenues amounted to 212 million euros after transporting six million passengers to their destinations. That is 30% more passengers than Ouigo (4.6 million), resulting in an average occupancy rate (seats sold per train) of around 66%. The company invested 900 million euros in 2023 and has increased its workforce from 169 to 522 after deploying its trains throughout the country and setting out a product range that combines cheap deals as well as premium seats.

Still, Iryo's shareholders have formally expressed their intention to provide any financial support to the company in order to ensure the company continues to meet its payment commitments to third parties. Iryo is 45% owned by the Italian public operator Trenitalia, 31% by AirNostrum and 24% by Globalvia.

Its market share in rail travel across Spain amounted to 27% in 2023. Their spokesperson pointed out that more than half of their operating costs (51%) went to pay fees to Adif for their use of the rail network, while 10% corresponded to energy costs.

The company indicates that these results are in line with their expectations because they are in a roll-out phase with a large investment that will pay off for them in a few years.

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