VIA Rail, the taxpayer-owned railway service, anticipates that its operating losses will continue to rise into 2024 due to challenges in the operating and financial environments. In 2023, VIA Rail faced an operating deficit of $403.9 million, which was a 14 percent increase from 2022’s $354.3 million. The projected deficit for 2024 is even higher at $430 million, signaling a continual upward trend in operating losses.
In its summary of the 2023–2027 corporate plan, VIA management attributed the rise in expenses to the resumption of normal services and an increasingly difficult economic environment. The corporation projected combined deficits totaling $2.1 billion from 2023 to 2027, acknowledging the significant impact of the COVID-19 pandemic on its financial performance.
Despite a $187.5 million special bailout approved in 2021, VIA Rail’s losses continued to grow. The corporation also reduced its payroll by 14.5 percent, from 3,234 to 2,763 employees, in an effort to mitigate losses. In addition to ongoing financial challenges, the corporation is facing the need for a new fleet of trains to replace cars and locomotives dating back to 1955, as well as the push for dedicated lines to replace current leases on Canadian National and Canadian Pacific Railway tracks.
While VIA Rail has introduced new trains and initiated programs to refurbish parts of its existing fleet, it has emphasized the urgency of acquiring a new fleet. The corporation has expressed hope that this investment will bring about a new era of passenger rail transportation, particularly on its busiest routes. However, concerns about increasing deficits and the need for significant upgrades have prompted discussions about potential decisions that future governments may need to make regarding VIA Rail.