East Japan Railway Co. (JR East) on Thursday said that 35 regional lines, accounting for a third of its total conventional line length, were all in the red in fiscal 2019, posting a total deficit of 69.3 billion yen, in the railway company's first separate announcement of income and expenses for local lines with fewer passengers.
The decline in railway users in rural areas is a nationwide problem. The severe impact of the novel coronavirus pandemic has deprived railroad operators of the capacity to financially support their unprofitable lines. The latest announcement will likely expedite moves to examine how to realize more sustainable public transportation systems in relevant areas, such as by shifting to bus services.
