China’s state railway operator recorded nearly RMB 100 billion ($13.7 billion) in net losses in the first nine months this year as Covid resurgence and strict virus control measures disrupted travel.
China State Railway Group Co. Ltd. said revenue for the first three quarters declined 0.5% from a year earlier to RMB 782.3 billion. The net loss widened 36% year-on-year to a record RMB 94.7 billion, exceeding combined losses in 2020 and 2021.
The high-speed railway line linking Beijing and Shanghai, the most profitable route, reported net earnings of RMB 152 million in the first nine months, down 96.5% from a year earlier.
Railway investment also declined. Nationwide fixed-asset investment in the railway sector dropped 6.89% to RMB 475 billion during the first nine months, according to China State Railway.
During the first nine months, 1.38 billion trips were made through the country’s railway system, down 33% from the same period last year, data from the National Railway Administration showed.
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