Germany's rail company, Deutsche Bahn (DB), is set to hike fares by 1.9% in December, the company announced in Berlin on Friday.

The hike comes as part of a series of fare increases. Last year, the company announced a fare hike of 1%, saying that they would use the extra funds to invest in more modern trains.

DB also plans to increase the cost of its Bahncards, which allow holders to buy discounted tickets. The Bahncard prices have not been increased in seven years, DB said. 

In a statement, the company said prices would rise to compensate for inflation,which is currently at 4.1%.

'Rail travel remains inexpensive'

"In a long-term comparison, rail travel remains inexpensive," the statement said. Even after the price increase in December, the price of a long-distance trip will be about the same as in 2012. 

Despite a general fare hike, prices for long-distance travel fell by 10% in 2020, after the federal government reduced the value-added tax. The aim was to encourage more people to travel by train instead of car or plane.

Deutsche Bahn is currently experiencing financial trouble. In addition to problems in its international business and freight traffic, the pandemic has reduced passenger travel.

In the first half of 2021, the debt-ridden company posted a loss of €1.4 billion ($1.6 billion). However, DB still hopes to double the number of long-distance passengers by 2030, compared with 2015 figures. 

lc/wmr (AFP, dpa)