Q3 2022: A SUCCESSFUL RETURN TO SERVICE AS CANADIANS RESUMED SUMMER TRAIN TRAVEL

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HIGHLIGHTS

From July 1 to September 30, 2022

• An indication of a successful service recovery with 1,080 million passengers travelling with VIA Rail in Q3, up from 535,300 during the same period in 2021.
• Passenger revenues increased by $70.9 million compared to Q3 2021.
• As expected, operating expenses increased compared to the same quarter last year mainly due to additional frequencies.

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MONTREAL, Nov. 30, 2022 /CNW/ - VIA Rail Canada (VIA Rail) saw a steady increase in ridership and revenues in the third quarter of 2022 as an elevated appetite for leisure travel this past summer helped to drive VIA Rail's recovery post pandemic. 1,080 million passengers travelled on VIA Rail in Q3, 2022, compared to 535,300 in the summer of 2021. While VIA Rail has expanded capacity on its train compared to the same period in 2021, it is still not operating at pre-pandemic levels.

"Our third quarter results show that after two years of pandemic, people were eager to travel again this summer and we are delighted that more than a million of them chose to travel by train," said Martin R Landry, Interim President and Chief Executive Officer. "The steady increase in ridership and revenues is a positive sign, and we will focus all our efforts on continuing to put our passengers first, and be a smarter way to move people, as we work towards carrying this positive trend into the fall."

VIA Rail's third quarter was marked by the largest marketing initiative of the year, with the launch in September of the new fall 2022 campaign entitled "Nothing Moves You Like VIA!" This campaign represents the latest significant purpose driven push in the Corporation's efforts to encourage Canadians to choose VIA Rail's safe, accessible, efficient, reliable, sustainable and environmentally friendly service.

VIA Rail reached more key milestones in the progress of its fleet replacement program for the Quebec City-Windsor Corridor in Q3, 2022, including the arrival of the second of 32 train sets at the Montreal Maintenance Centre and the inauguration of the new fleet's state-of-the-art simulator at the Transportation Training Centre in Toronto. In August, VIA Rail's teams conducted accessibility testing on the new fleet, a priority for the Corporation, as it is determined that these new trains will be among the most accessible in the world. The next few months will be filled with more important milestones in anticipation of the progressive entry into service scheduled for November.

Following tentative agreements with Unifor negotiated in July, VIA Rail announced on August 2nd that the union had ratified the collective agreements of some 2,400 employees working in stations, on board trains, in maintenance centres, the VIA Customer Centre, and administrative offices. This ratification provides stability for the next three years and greater flexibility to actively pursue the return of VIA Rail's services and advance the Corporation's important modernization projects.

In August, as part of its five-year sustainability plan, VIA Rail launched a Supplier Conduct and Responsible Sourcing Policy, reinforcing the basic standards of conduct that VIA Rail expects from its suppliers and allowing for the integration of sustainability criteria into certain contracts for products and services it purchases. VIA Rail is proud to be part of the solution to help Canada create a more sustainable future for all.

Also, in August, VIA Rail reported to Canadians on its performance, financial results, and modernization projects for 2021 in a video recorded aboard the first train of the new Corridor fleet at the Montreal Maintenance Centre. The Annual Public Meeting generated more than 400 questions from VIA Rail passengers. The top 3 questions related to specific service resumption in various communities, on-board services, and VIA Rail's modernization, sustainability, and accessibility plans.

At VIA Rail, the safety of our passengers and employees is at the centre of everything we do. With this in mind and based on the results of a third party engineering report, the Corporation has added buffer cars to the front and back of all trains running with stainless steel (HEP) equipment. The addition of these cars has contributed to limitations of equipment availability which has required VIA Rail to continue operating at a reduced capacity.

VIA Rail's 2022 third quarter report is available here.

As Canada's national rail passenger service, VIA Rail (viarail.ca) and all its employees are mandated to provide safe, efficient and economical passenger transportation service, in both official languages of our country. VIA Rail operates intercity, regional, and transcontinental trains linking over 400 communities across Canada, and about 180 more communities through intermodal partnerships, and safely transported over 5 million passengers in 2019. The Corporation has been awarded nine Safety Awards and three Environment Awards by the Railway Association of Canada since 2005. Visit the "About VIA Rail" section at https://www.viarail.ca/en/about-via-rail.

SOURCE VIA Rail Canada Inc.