Why public transport operators across Germany are cutting services

Demand for public transportation has risen significantly in Germany in recent years. Thanks in part to the popularity of the Deutschlandticket, which allows people to use local transport across the country for a fixed price, an increasing amount of passengers are relying on buses and regional trains for their day to day travel.

But in some German states, regional transport companies are cutting back their services rather than expanding them, suggesting that income is not keeping up with increasing maintenance costs.

Where are transport services shrinking?

German news agency DPA reported that in the northern state of Schleswig-Holstein connections at off-peak times and on weekends will be cancelled on several regional train lines from December.

State transport minister Claus Ruhe Madsen (CDU) said the cancellations were “...certainly not the signal we want to send". He added that the service cuts would affect less than 1.5 percent of all connections in the state.

The Association of German Transport Companies (VDV) told DPA that service reductions are looking more and more likely in other German states as well.

Lower Saxony is conducting an audit at the moment, and the threat of cancellations is also present in Baden-Württemberg and North Rhine-Westphalia, according to the association.

Reductions in these regions are expected to begin by the end of next year.

Along with service cuts, there are also cancellations for additional trains. On busy routes, booster trains are needed to keep up with passenger growth but in many cases these are no longer feasible from a cost point of view.

Budget problems

Transport companies across Germany cite the same reason for their service reductions: a lack of funding to cover rising operation costs. 

Personnel costs have reportedly risen by around 13 percent between 2019 and 2021, and material and energy costs have risen by almost 40 percent. Since that period inflation has come down, but costs remain high.

German states are responsible for funding regional transport, and it’s financed primarily by ticket sales as well as regionalisation funds granted by the federal government.

Last year these federal funds amounted to around €12.4 billion. It is planned that this pot will grow by three percent each year until 2031, but the actual operating costs are growing much more rapidly, says the VDV.

Industry leaders suggest the budget would actually need to grow by about €3 billion every year to maintain current operations.

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In the first half of 2025, around 5.6 billion people travelled by regional buses and trains in Germany, according to the Federal Statistical Office – up by about six percent compared to 2023.

This high demand results in crowded trains and buses to and from popular destinations.

Ticket prices are rising in many places

In place of (or in addition to) cutting connections, some states are raising fares to offset their budget deficits.

In Berlin and Brandenburg, for example, an average increase in ticket prices of around 7.5 percent from 2025 is planned - although not yet finalised. 

Bremen, Munich and the major NRW transport associations have announced price increases from January.

Meanwhile, the monthly subscription price for the Deutschlandticket, which allows passengers to ride regional trains and buses in every state in Germany, is also set to rise by €9 starting in January, making it €58 per month. 

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With reporting by DPA.