Renfe
Renfe Operadora is Spain’s state-owned railway operator and one of Europe’s largest rail companies by passenger volume. The company operates approximately 12,000 km of rail network across Spain, serving over 500 million passengers annually through high-speed AVE services, regional trains, and commuter operations.
History
The original RENFE (Red Nacional de los Ferrocarriles Españoles) was established in 1941 as Spain’s national railway monopoly. In 2005, following EU directives on railway liberalisation, the Spanish government separated infrastructure management from operations. Infrastructure responsibility transferred to ADIF (Administrador de Infraestructuras Ferroviarias), while Renfe Operadora retained ownership of rolling stock and operational management.
The Spanish domestic market opened to competition in 2021 when French operator Ouigo España launched services, followed by Iryo in 2022, ending Renfe’s seven-decade monopoly.
Operations
Renfe’s network operates on two primary gauges: the historic Iberian broad gauge of 1,668 mm used across conventional lines, and international standard gauge of 1,435 mm employed on the AVE high-speed network since 1991.
Operations divide into commercial services (AVE high-speed, Avlo low-cost, Alvia, Euromed, Intercity) and Public Service Obligation routes (Cercanías commuter networks in 11 metropolitan areas, Media Distancia regional services, Avant high-speed regional). In 2024, Renfe transported over 535 million passengers—a historic record.
Market position and challenges
Renfe faces intensifying domestic competition from Ouigo and Iryo on lucrative corridors between Madrid, Barcelona, and Andalusia. The company has responded by launching new routes and competitive low-cost Avlo services.
The freight division Renfe Mercancías continues loss-making operations despite improvement, while supply chain issues with Talgo’s delayed AVRIL high-speed trains have constrained capacity expansion until 2026. Infrastructure vulnerabilities were exposed by the April 2025 Iberian power blackout, which cost nearly EUR 10 million.
International expansion
Renfe manages international operations in Saudi Arabia (Haramain high-speed railway) and Mexico (Tren Maya), contributing EUR 87 million to group revenue in 2024. The Spanish government authorised new subsidiaries in France and Mexico in February 2025 to consolidate expansion.
European services include international AVE routes to Lyon, Marseille, and planned Barcelona-Toulouse connections, though certification challenges with SNCF have complicated French market entry. Renfe withdrew from the Texas Central high-speed project in 2025, writing off EUR 4.5 million.
Financial performance
Renfe Group approached break-even in 2024, reducing consolidated losses to EUR 2.9 million from EUR 121.5 million in 2023. Group revenue reached EUR 4.12 billion, up 5.5% year-on-year, while EBITDA surged 59% to EUR 489.5 million.
The passenger subsidiary Renfe Viajeros returned to profit for the first time since COVID-19, posting EUR 5.4 million net profit in 2024. Commercial services drove growth with 88% EBITDA increase to EUR 114.6 million, while public service operations recorded EUR 224.4 million EBITDA despite extended free travel pass schemes.
Policy relevance
As Spain’s incumbent operator, Renfe plays a central role in Spanish transport policy and EU rail integration. The company’s international services support Single European Railway Area objectives, particularly Mediterranean Corridor TEN-T development. Renfe has reduced carbon emissions by 88.7% compared with 2005 levels, with 81% of energy from renewable sources.
The tension between commercial viability and public service obligations remains central to Renfe’s strategic positioning, reflected in government support for loss-making services while encouraging commercial route profitability through operational efficiencies and competitive service development.