AC is Cool for the Railways
The railways are earning significantly more from AC 3-tier passengers. In 2019-20, 110 million passengers (1.4% of total passengers) travelled in AC 3-tier. In 2024-25, this number rose to 260 million (3.5% of total passengers). During this period, the railway’s revenue from AC 3-tier increased from ₹12,370 crore to ₹30,089 crore. This means that a mere two percentage point increase in passengers resulted in a nearly 2.5-fold increase in revenue.AC 3-Tier Passengers are the Railways’ Cash Cows
Financial Year | Passengers (in crores) | Revenue (₹ in crores) |
2020 | 11.34 | 12,370 |
2021 | 3.24 | 4,750 |
2022 | 10.31 | 12,225 |
2023 | 18.03 | 21,345 |
2024 | 21.10 | 25,015 |
2025 | 25.97 | 30,089 |
Sleeper Fare Increase Exceeds That of Third AC
The average fare for AC 3-tier has also increased less than other classes. Compared to 2019-20, the AC 3-tier fare increased by 7.4% per passenger in 2024-25, while the increase was 25.38% for AC First Class, 23.24% for AC Chair Car, and 18.22% for AC 2-tier. For sleeper class, the figure was 10.64%.Between 2019-20 and 2024-25, the number of sleeper class passengers increased by 10 million. According to Railway Minister Ashwini Vaishnaw, 6,511 new general compartments were added between 2019-20 and 2023-24. Assuming 72 seats per compartment, this translates to only 468,792 additional seats. Overall, the government has launched 772 new trains in five years, including local, long-distance, and Vande Bharat trains. This indicates a serious shortage of seats, even for AC passengers.