Exclusive:Edinburgh Tram losses hit £64m despite record-breaking passenger numbers
2024 was the seventh loss-making year in a row for the tram company.
Edinburgh Trams made a loss of almost £10 million in 2024, despite seeing a record-breaking number of passengers.
Accounts show the trams recorded a net loss of £9,645,644 last year, bringing the total losses since opening to over £64m.
This was the seventh loss-making year in a row.
This is despite the trams bringing in £28,815,444 in revenue after “another landmark year” which saw passenger numbers exceed 12 million for the first time.
Saturday 8 June, one of the days Taylor Swift was playing at Murrayfield, also saw the highest ever daily passenger numbers at 74,401.
Over the three days of the Eras tour, over 250,000 passengers took the tram and all 27 trams were live for the first time ever, something the company says was a “major accomplishment”.
It is also the first full calendar year of the full line from Edinburgh Airport all the way to Newhaven, which saw passenger numbers increase by 31 per cent on 2023.
A further 30,000 passengers used the tram to travel to the Royal Highland Centre and airport departures increased by 7 per cent to just over 1 million.
Edinburgh Trams has not run a profit since 2017. In the years since, the service has made losses of £7.62m, £9m, £8.8m, £8.7m, £10.9m, £10.3m and now £9.6m.
The trams have only made a profit twice since opening 10 years ago - £250,000 in 2016 and £1.6m in 2017.
Edinburgh City Council has charged the tram company an “annual asset fee” of £8.5m since 2018 to “reflect the additional borrowing costs associated with the cost overrun on the original line”. This comes to a total of £59.5m, meaning the losses since 2017 are largely attributable to this fee.
Sue Webber, the Scottish Conservatives’ transport spokeswoman and an MSP for the Lothians, said: “These staggering losses will be a bitter pill to swallow for Edinburgh residents who were already hit with a final bill of over £1 billion for the tram project.
“Taxpayers were told this project would eventually pay for itself, but it is still continuing to bleed money.
“With record passenger numbers, it is deeply alarming that Edinburgh Trams lost almost £10m last year.
“SNP politicians who were at the forefront of this sorry saga as well as Labour councillors in control of the capital cannot pass the buck, especially when they continue to champion the trams.
“Both parties must explain why taxpayers are still footing the bill for a project that should be turning a profit by now.”
Stephen Jenkinson, convener of transport and environment at Edinburgh Council, told The Scotsman the trams have brought value to the city beyond profits.
He said the service offers some of the cheapest fares in the country, and the team won UK transport operator of the year at the National Transport Awards 2024.
Mr Jenkinson said: “Our aim is to improve connectivity and encourage a shift away from private car use to more sustainable transport options.
“The successful completion of the line to Newhaven in 2023 has already brought significant economic, social and environmental benefits to Leith, north Edinburgh and to the city as a whole.
“The new developments and businesses we see along the route are key to our city’s shared prosperity, as are the wider benefits of cleaner air, emphasis on active travel and progress on addressing the climate and housing emergencies.”
Mr Jenkinson added the council is now looking to expand the tram network further and next month will launch a consultation on a north-south tram line between Granton and Edinburgh Royal Infirmary.
He added: “This development is key if we’re going to deal with the challenges of our growing city and wider region in future years.
“With Edinburgh’s population expected to increase by over 60,000 in the next 20 years, investment in the tram and wider public transport is more important than ever.”
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