2nd interim period 2022: Increasing travel activity and improved results
- We are pleased that many of the customers are back on our buses and trains, says CEO of Vy, Gro Bakstad.
– This gives positive financial results, and our most important job is now to make it even more attractive for customers to travel by public transport when they can, Bakstad continues.
Vy has experienced a positive development in the number of travellers throughout the summer, but there is still lower travel activity than in 2019. The operating result for the first eight months of the year is NOK 419 million (-347 million). Figures in brackets are for the same period in 2021.
- For the first time since before the pandemic we are delivering a positive financial result. In addition, the result is significantly strengthened by one-off effects related to the fact that we have recently renegotiated agreements for passenger train traffic in Norway and Sweden. We have therefore reversed previous loss provisions on these contracts, says Bakstad.
- On the negative side, high energy prices have significantly weakened the result, and the number of travels is still 20percent under the normal in 2019, she continues.
A combined train off er in Eastern Norway is best for customers and society
Train traffic in Eastern Norway will be split in two, and directly allocated to a state-owned train operator (Vy and/or Flytoget). The Railway Directorate has announced that they will first enter into negotiations with Vy on the first traffic package and then with Flytoget on the second. Final decision on allocation is expected before and after the new year respectively for the first and second package, and the start of production under the new agreements will be December 2023.
- We are concerned about the consequences this split will have for customers and society. A combined operation provides economies of scale, and an efficient and flexible use of trains and employees across train routes in the whole of Eastern Norway, says Bakstad.
Tough period for train customers
Although we have experienced a gradual increase in the number of train passengers, and the increase from the same period last year is as high as 83 per cent, so far this year we have had 20 per cent fewer passengers than in the same period in the normal year 2019.
This year we have experienced more and more challenges on the infrastructure which have caused delays and cancellations. This has resulted in a low punctuality of 86 per cent, a decrease of three percentage points compared to the same period last year, and punctuality developed negatively in the second quarter. The target is 90 percent.
- Unfortunately, the low punctuality has had significant negative impact on our customers, and may have contributed to fewer people taking the train. For that we apologise, and we are far from satisfied with the punctuality. That is why we work hard to improve what is under our control, and follow up and give a little extra support to Bane NOR, which is responsible for train tracks, signals and electricity, says Bakstad.
The bus customers are on their way back
Vy Buss runs routes on tender or contract with county municipalities and commercial express bus routes in Norway and Sweden. The passengers are now on their way back, and the number of journeys with our commercial express buses has developed positively throughout the second interim period. Here, the offer is also adapted to the demand.
- Summer is a holiday for leisure travel, and we are pleased that for several weeks we experienced as much travel activity as before the pandemic in 2019, says Gro Bakstad.
The operating profit for the first eight months of 2022 is NOK 9 million (NOK 53 million).
- A tough winter in the northern regions led to additional costs for CargoNet on top of increased energy and fuel costs. At the same time, we are working to renew our locomotives and rolling stock, so that we can offer increased transport capacity and improved predictability for our current and new customers, says Gro Bakstad.
The tourism industry on the road to recovery
- Tourism has been severely affected by the pandemic, but fortunately we are seeing a significant improvement in demand now, especially from Europe and the USA. The number of travels on the Flåm Line for the first eight months of the year landed at 58 percent of a normal year, concludes Bakstad.