Crisis in Spanish Transport: AVE Network Paralysis and Talgo's €100 Million Loss

Spanish rail giant Talgo has reported its 2025 financial results, showing a net loss of 100 million euros. Although this is a 6.7% improvement compared to the previous year, the company's situation remains tense. The main burden on the balance sheet turned out to be delays and operational costs associated with the execution of contracts in foreign markets, particularly in Germany and the United States. Despite these difficulties, the company recorded revenues of 618 million euros and expresses optimism about prospects for 2026, hoping for margin stabilization and new orders. At the same time, the Spanish rail network is facing a sharp deterioration in service quality on routes connecting Madrid with the south of the country. AVE has suspended train services between the capital and Córdoba and Málaga, causing transport chaos. This situation is causing great concern in the tourism industry, which fears a drop in bookings ahead of the upcoming Easter holiday. The regional authorities of Andalusia are sharply criticizing the infrastructure manager, accusing the central government of „maltreatment” of the region and leading to the transport isolation of Málaga, which may prompt tourists to choose other destinations in the Mediterranean basin. The Spanish high-speed rail network AVE was inaugurated in 1992 on the Madrid-Seville line for the Expo exhibition and has since become a symbol of the country's modernization, although its maintenance generates enormous costs for the state budget.In the shadow of railway problems, the Spanish aviation market is preparing for personnel changes. National carrier Iberia has begun negotiations with trade unions regarding voluntary departures for employees (ERE). The program is to cover both cabin crew and ground staff. Meanwhile, the IAG group, which owns Iberia, has proposed paying a supplementary dividend of 0.05 euros per share, indicating the relatively stable financial position of the aviation holding compared to the problems in the rail sector. „El maltrato por desconexión ferroviaria en Málaga amenaza a nuestro sector turístico.” (The maltreatment through railway disconnection in Málaga threatens our tourism sector.) — Junta de Andalucía (Government of Andalusia) Against the backdrop of these events, positive signals are coming from Barcelona, where a planned strike by FGC train drivers has been called off. An agreement was reached just before the start of the Mobile World Congress trade fair, which will allow for the smooth handling of thousands of participants at this global technology event. The stock market index IBEX 35 ended February with a 2.6% increase, showing that despite localized crises in transport, the broader capital market in Spain is showing an upward trend.