VIA Rail Canada Reports 11% Revenue Growth in 2024 Despite Operating Losses

VIA Rail Canada, the national intercity rail operator, reported solid growth in both revenue and ridership for the fiscal year 2024, as detailed in its annual financial report. The company saw a 6.6% increase in passenger traffic and an 11% rise in total revenue year-over-year. Despite these operational gains, VIA Rail continues to post substantial operating losses, reflecting ongoing structural challenges in Canada’s passenger rail sector.

Performance Overview and Underlying Challenges

In 2024, VIA Rail’s total revenue reached CAD 480.2 million (approximately USD 353.8 million), up from the previous year as ridership climbed to 4.4 million passengers. However, the company reported an operating loss of CAD 385.2 million (USD 283.7 million), widening by CAD 3.4 million from its 2023 performance.

The disparity between top-line growth and bottom-line losses highlights persistent cost pressures, such as infrastructure maintenance, fuel expenses, and labor overhead. VIA Rail’s operations remain heavily reliant on federal subsidies, which continue to bridge the gap between commercial revenues and operating costs.

Key Facts:

• 🔹 Revenue (2024): CAD 480.2M (USD 353.8M)

• 🔹 Passenger volume: 4.4 million, up 6.6% YoY

• 🔹 Operating loss: CAD 385.2M (USD 283.7M)

• 🔹 Loss increase vs. 2023: CAD 3.4M

• 🔹 Revenue growth YoY: +11%

Market Response and Expert Insight

While VIA Rail is not a publicly traded company and thus not subject to equity market reactions, the financial results offer insight into broader trends in Canada’s transportation infrastructure. Industry experts note that the uptick in ridership reflects a partial post-pandemic recovery and growing public preference for low-emission travel options.

Policy analysts emphasize that VIA Rail’s performance strengthens the case for continued federal investment in passenger rail, particularly along the Quebec City–Windsor corridor, where the demand for intercity travel remains robust. However, calls for modernization—ranging from high-frequency rail (HFR) to fleet upgrades—underscore the need for capital-intensive transformation.

Key Developments:

1. Passenger Demand Recovery: 4.4 million passengers signals sustained rebound

2. Revenue Climb: 11% increase driven by ticket sales and service resumption

3. Operational Deficit: Structural inefficiencies and rising input costs persist

4. Public Funding Dependence: Core operations remain subsidy-reliant

5. Policy Momentum: Results fuel debate on future rail infrastructure investment

Growth in Ridership, But Long-Term Viability in Question

VIA Rail Canada's 2024 results reflect a complex operational picture: increasing public usage and revenue alongside deep-rooted financial shortfalls. The reported growth in ridership and revenue confirms the relevance of rail travel in Canada’s domestic transport network. However, the persistent operating losses continue to raise concerns about the long-term sustainability of VIA Rail’s business model without significant policy reform and capital investment.

As the government weighs future funding for large-scale projects like high-frequency rail, VIA Rail’s financial trajectory will serve as a key reference point for national transit planning. The company’s future depends not only on increasing operational efficiency but also on broader political and infrastructural commitments to sustainable, modern public transportation.