Vy continues to grow after the pandemic

The operating profit for the first eight months of the year was NOK 310 million, which is an underlying improvement ofNOK 373 million from last year.

– We are very satisfied to see even more people choosing to travel with our trains and buses, and travel activity is approaching the level of the normal year 2019 before the pandemic, says CEO of the Vy Group, Gro Bakstad.

Increased travel activity and new large train contracts in Eastern Norway

Travel activity on Vy's trains in Norway is now 99 per cent of the normal year 2019 and 24 per cent higher than the same period last year. Total punctuality was 86 per cent so far this year, on a level with the same period last year, but lower than the target of 90 per cent. Operator-dependent punctuality is over 98 percent.

– We are not satisfied with the low punctuality, which is mainly due to the infrastructure. In August, the train service was also affected by the extreme weather. We do what we can to ensure that customers get a more reliable railway and good alternative solutions during disruptions, and encourage higher grants for infrastructure maintenance, says Bakstad.

The most important clarification for Vy's train operations came at the end of June, when together with the Norwegian Railway Directorate we signed the agreements to continue running trains in Eastern Norway.

– We are very happy that we will be operating the trains in Eastern Norway for another ten years, and look forward to delivering an even better offer to customers, says Bakstad.

More travel with Vy's express buses

The commercial bus business has had a 31 per cent increase in the number of journeys compared to last year, and is now well above the level in 2019. The increase mainly comes from travellers on holiday and the leisure market.

The bus traffic Vy runs in tender contracts also has a positive development, with both travel and revenue growth, and better indexation of cost increases in the tender contracts.

– Vy buss does a good job that the customers appreciate, with new routes, comfortable buses and skilled and service-oriented bus drivers. This means that the bus business contributes positively to the group's results, says Bakstad.

Extreme weather conditions in August presents challenges for cargo/freight

The growth in demand for rail freight is somewhat reduced but has nonetheless contributed to continued increased volumes so far this year. Growth has been hampered by operational

challenges linked to harsh winter conditions, building activities at the Alnabru freight terminal and challenges wit holder trains.

The extreme weather Hans in August led to several closed railway lines and the closure of the Dovrebanen for a longtime after the collapse of the Randklev bridge. This has resulted in a very demanding operating situation for both customers and freight operators and has significantly weakened CargoNet's results.

The government has proposed a temporary support scheme for freight train companies that cannot transport goods on the Dovrebanen during the period the section is closed to traffic.

For CargoNet, the closure of the Dovrebanen has major consequences. This limits the amount of goods that can be transported by rail and entails significant financial losses.

– It is gratifying and very important that the government grants a temporary support scheme. At the same time,
better and predictable framework conditions, including the environmental support scheme, are also crucial for the long-term profitability of freight transport by rail, says Gro Bakstad.

Improvement for the tourism industry

The tourism industry has had a good recovery after two-three years of the corona pandemic. We see a significant improvement in demand, and the number of journeys on the Flåm Line has increased by 38 per cent compared to last year and is at 80 per cent of the level for 2019.

- It is gratifying to see that Norwegians are using our tourism products and that foreign tourists are now returning toNorway after the pandemic. The low krone exchange rate has also contributed to Norway being an attractive holiday country for foreign tourists this year, says Gro Bakstad.