Why is the train more expensive than the plane? Alexis Chailloux's analysis

Written by Sophie Renassia

Published yesterday

“French trains are too expensive!” It's a phrase many passengers have heard before. But what do our tickets really pay for? Why are prices so different from those of air travel? Why do prices vary so much from one moment to the next? And, at the end of the day, what's at stake behind our tickets?

To find out, we wanted to give the floor to a number of French rail experts with differing points of view and interests, in a series of four episodes on our podcast Je t’offre un rail ?. In this first episode, we present the analysis of Alexis Chailloux, head of transport for the NGO Réseau Action Climat.

What do our tickets pay for? The foundations of rail costing

A heavy and costly infrastructure

Trains rely on a vast and complex infrastructure, requiring colossal investments for maintenance and modernization. “Unlike aviation, which benefits from airports amortized over the long term and relatively free airspace, rail involves kilometers of track to be maintained on a daily basis,” points out Alexis Chailloux.

In France, network maintenance costs around 5 billion euros a year, largely shared between SNCF and the French government. Each kilometer of high-speed line (LGV) requires an initial investment of 15 to 30 million euros, plus maintenance costs of up to 100,000 euros per kilometer per year.

Neglected maintenance can have serious consequences for passengers. Alexis Chailloux gives the example of German trains, which are “40% late”. The reason? “They didn't anticipate the ageing of the network, so they end up with a lot of work to do...”.

Added to this are the costs associated with ancillary infrastructure: stations, signalling, rolling stock. “The cost of a TGV train is around 30 million euros, and each train must be maintained with extreme regularity to guarantee the safety and performance of the network”.

A business model based on user fees

Unlike freeways, where tolls are paid directly by motorists, rail companies have to pay substantial fees to use the tracks. In France, these rail tolls average €9.50 per kilometer for a high-speed train.

“An airline pays primarily for kerosene and airport taxes, whereas a rail company has to finance a much heavier infrastructure that is difficult to make profitable,” explains Alexis Chailloux.

These charges weigh heavily in the rail industry's economic balance, and are directly or indirectly reflected in ticket prices.

Here's a quick reminder of the different players in the French rail system:

• TER: regional transport, managed and subsidized by the regions (more than 50% of the ticket price is covered, but only for rolling stock, not for the network).
• INTERCITÉS and TGV: managed by the State, which covers part of the costs, but also passes on the user fees on tickets.

Why do trains sometimes cost more than planes?

Yield management

You've probably already noticed that the later you book your ticket, the higher the price. In fact, we often remind you of this golden rule in our newsletter: if you want to pay less, the earlier the better.

Train tickets are not fixed at a single fare. This “yield management” strategy, borrowed from the airline industry, involves adjusting prices in real time according to demand, using dynamic pricing algorithms. “The higher the demand, the higher the prices, which penalizes last-minute travelers”, explains Alexis Chailloux.

For example, a Paris-Lyon TGV journey can cost €30 if you book weeks in advance, and over €150 during peak periods or if you book the day before. For many users, this variability reinforces a feeling of injustice, especially when you don't have the flexibility to plan well in advance.

Fiscal imbalance: the example of kerosene

Another factor explaining the high cost of rail travel is the taxation applied to it. In France, VAT on train tickets is set at 10%, while the airline sector benefits from two major tax exemptions: no tax on kerosene, and 0% VAT on international flights (10% on domestic flights)! “This asymmetry indirectly favors air travel to the detriment of rail, which makes neither ecological nor economic sense,” deplores Alexis Chailloux.

Since March 2025, the solidarity tax on airline tickets in France (also known as the “Chirac tax”) has been increased. In practice, its amount, which was derisory, will increase slightly (from €2.63 to €7.40 for a European flight).

This increase should bring in between €800 and €850 million for the State. But as Alexis Chailloux points out in a Linkedin post, this is still a far cry from what a tax on kerosene would bring in, since the airline sector enjoys a considerable tax advantage (zero tax on kerosene)... "Why should kerosene escape taxation and gasoline not? Why should going on vacation to the other side of the world be exempt from VAT when even basic necessities are eligible (at a reduced rate)?" he laments in his post.

In his view, rebalancing taxes would make rail more competitive without necessarily increasing public subsidies.

How can we make trains more affordable?

1. Reforming taxation and rebalancing costs

The first area for reform is fairer taxation. Alexis Chailloux proposes aligning rail taxation with that of air travel: reducing VAT on train tickets and, above all, imposing a tax on kerosene would put an end to the unfair competition between air and rail. In his view, a tax of 30 cents per liter of kerosene would bring in almost 500 million euros a year, which could be reinvested in rail. “It's hard to make rail competitive if its main competitor enjoys almost total tax exemption”, he insists.

2. Reduce rail charges

SNCF currently pays almost 1.5 billion euros a year in rail tolls! Reducing these user charges could have a direct impact on ticket prices, thanks to the savings made. It's a question of budgetary and political choices, because network maintenance will always have to be financed: the question is by whom.

So don't hesitate to sign the petition launched by our association (Les Aventuriers d'HOURRAIL!) to demand lower rail tolls!

3. More transparent pricing

The proliferation of offers and fares can give the impression of fare opacity. Simplifying fares, for example with a capping system or a subscription as in Germany (“Unlimited Pass” at €49/month) could make trains more accessible and simplify life for users.

4. Increased public investment

For Alexis Chailloux, modernizing the network, making it denser and maintaining it requires a large-scale plan. According to Alexis Chailloux, 10 billion euros of investment are needed over 10 years to get the railways back on track. Better rail financing means improved punctuality and comfort, and ultimately lower long-term operating costs!

5. Opening up to competition: solution or mirage?

The arrival of new players on the French rail market, such as Trenitalia and Renfe, suggests that prices may fall as a result of competition. In some countries, such as Italy, where several companies already operate on high-speed lines, prices have indeed fallen on competitive routes, but only on routes where several operators are present.

According to Alexis Chailloux, “competition has a limited effect on prices because it does not eliminate the high structural costs of rail”. Clearly, without subsidies or tax reforms, opening up the market is no guarantee of more affordable fares.

Another example is the privatization of Britain's railways, which, far from lowering prices, has actually led to exorbitant fares and a backward step!

To go further: proposals from Aventuriers d'HOURRAIL! (the association of low-carbon travel enthusiasts) to decarbonize transport, in particular by reducing the cost of rail travel.

In conclusion, reducing train fares is not something that can be achieved by waving a magic wand. It requires a real political will, to reform the tax system and invest in network maintenance and modernization. It also requires a better framework for pricing, to avoid price discrepancies that penalize last-minute travelers. Above all, a rebalancing between air and rail transport is essential to make rail more financially attractive.

If rail is to become the backbone of sustainable mobility, it must be accessible to all. The future of rail transport will therefore depend on the strategic choices made today, and on the ability of public authorities to reconcile profitability and accessibility!