Via Rail Faces $31 Million Losses Amid Record Delays
09.10.2025
Via Rail faces mounting financial and operational challenges after paying $31 million in travel vouchers to passengers affected by long delays across its Quebec City–Windsor corridor.
This is reported by the railway transport news portal Railway Supply.
Via Rail Battles Growing Delays and Financial Losses
The company continues to struggle with record delays caused by a dispute with CN. Since last fall, trains have frequently arrived more than one hour late, triggering passenger compensation.
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Via Rail issues vouchers equal to 50% of fares among one-hour delays and full refunds when voyages go beyond four hours. These payments account for about seven percent of all revenue in 2024, which points out the size of the problem.
Transportation expert Jacques Roy called the situation “a reflection of poor coordination,” noting that punctuality fell from 45% to just 29% in one year. And because delays undermine passenger trust, the financial impact could worsen if performance doesn’t improve soon.
Via Rail and CN Dispute Over Train Safety Rules
The conflict stems from CN’s concern about the design of Via Rail’s new Venture trains. These shorter and lighter trains have 24 axles, while CN demands 32 to ensure safety systems activate properly at crossings.
Because of this, CN required engineers to slow to 80 km/h instead of 160 km/h at each crossing. The rule doubled travel times and caused widespread frustration among travelers and staff. But in August, both companies reached a temporary deal allowing a steady, reduced speed across longer segments.
The agreement has eased delays slightly, yet Via admits results remain inconsistent. Transport Minister Steven MacKinnon criticized the performance as “unacceptable” and urged the company to focus on restoring reliability and passenger confidence.
CN maintains that safety must remain the top priority. Both companies now await further direction from Quebec’s Superior Court, which earlier rejected Via’s request to lift the restrictions.
Source: www.cbc.ca
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Why is Via Rail experiencing so many delays?
Via Rail’s delays stem from a dispute with CN over safety systems on its new Venture trains, which led to reduced operating speeds at rail crossings.
How is Via Rail refunding passengers who are delayed?
Passengers receive travel vouchers worth 50% of fares for delays over one hour and full-value vouchers for delays exceeding four hours.
Can Via Rail improve its on-time performance soon?
It has a short-term agreement with CN to keep the show running, but lasting changes will need technical interventions and long-term agreement from the regulatory body.
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