High-speed rail in Spain is accelerating, spurred by the liberalization of the sector and the entrance of private competitors into the former state monopoly. Iryo, a joint venture involving Trenitalia (45%), Air Nostrum (31%), and Globalvía (24%), marks its first anniversary in Spain with solid momentum. In its inaugural year it carried about 5 million passengers, with targets aiming higher next year and a potential 15% growth. The network now spans eleven national destinations and commands a substantial slice of the market.
“Iryo is built to endure and lead,” stated Simone Gorini, the company’s CEO, during a press briefing. The Spanish expansion continues with the planned launch of the Barcelona-Seville cross-route on December 10, and the shareholders are eyeing further growth opportunities beyond.
Adif, the operator of Spain’s rail infrastructure, is preparing for a second wave of liberalization by opening access to new corridors. Madrid-Barcelona, Madrid-Levante, and Madrid-Sur corridors are on the table, with existing routes such as Galicia, Murcia, and the Mediterranean Corridor already open to competition. Gorini underscored the readiness to seize upcoming opportunities, noting that Adif is refining capacity allocation while considering additional rolling stock. The group currently operates a fleet of 20 trains and anticipates expanding to meet rising demand.
The strategic plans extend beyond domestic routes. Iryo and its majority shareholder Trenitalia, under Italy’s Ferrovie dello Stato, are exploring international connections from Spain. A Barcelona-Paris route is under consideration, positioning Iryo to compete with SNCF, which operates Ouigo in Spain, and Renfe, which plans to join the Paris route with a Barcelona-Lyon linkage next summer. Until 2022, the Barcelona-Paris service was a Renfe-SNCF joint venture; SNCF later established its own operations.
“There is clear demand for the Barcelona-Paris corridor,” the CEO noted, acknowledging the competitive landscape shaped by Renfe and SNCF. Iryo and Trenitalia France are collaborating on technical approvals to enable the cross-border service, though a launch date has not been set. Cooperation in validating rolling stock for international routes is ongoing, while Trenitalia France already operates Paris-Milan and Paris-Lyon services and now seeks a Spanish connection.
“Risk” to profitability
All high-speed operators, including Renfe, Iryo, and other players, face regulatory scrutiny from the National Markets and Competition Commission (CNMC). Adif’s pricing strategies and the ongoing liberalization press for efficiency but also raise questions about costs. Wage levels in Spain remain a concern for profitability, with Gorini noting that labor costs must be managed to sustain growth.
Recent statements from Alsa and Eco Rail underline the intense competition among three major operators and several brands. The entrance of new players is a central theme of the ongoing liberalization, and Iryo views fresh competition as a potential risk to sector profitability. As capacity is allocated and new routes emerge, operators will need to balance investment with market dynamics. The possibility of additional operators joining the market raises questions about future profitability but also creates opportunities for improved services and coverage. The likelihood of Iryo entering Cercanías remains uncertain as plans focus on longer-range intercity services.
Forecasts place profitability on a multi-year horizon. The high-speed rail sector has become a battlefield for market share, prompting fare promotions as operators vie for riders. Iryo suggests that competitive pricing will eventually normalize and that ticket prices may adjust upward once demand stabilizes. In the near term, promotional pricing supports market entry and growth while sustainability remains a central concern for all players in this evolving landscape.
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