Amtrak’s FY20 Preliminary Financials

[JPS1]

FY20 was not a good year for Amtrak’s financials.  COVID-19 helped reverse what had been a steadily improving financial picture for the nation’s intercity passenger railroad.  

 

Adjusted Operating Earnings in FY20 were $(731) million compared to $36 million in FY19. The NEC had an adjusted operating loss of $(7) million compared to $(75) million for the state supported trains and $(649) million for the long-distance trains.  After adjustment for ancillary revenue – net and infrastructure – net, the system loss was $(801) million compared to $(30) million in FY19.  Numbers are rounded; those in parentheses are negative. 

 

System revenues declined 39 percent, i.e. 50% for the NEC vs. 39% for the state supported trains and 37% for the long-distance trains.  System operating expenses declined 11%, i.e. 15% for the NEC compared to 16% for the state supported trains and 3% for the long-distance trains. 

 

Amtrak’s ridership declined 48%, i.e. 51% for the NEC compared to 48% for the state supported trains and 41% for the long-distance trains. 

 

The Adjusted Operating Earnings per passenger were $(1) for the NEC compared to $(9) for the state supported trains and $(241) for the long-distance trains. 

 

The last six months of FY20 felt the full-on impact of COVID-19.  Amtrak was not able to proportionally shed costs to match the decline in ridership and revenue, thereby acerbating system and segment losses. 

 

On a fully allocated cost basis, the system had a FY20 loss of $1.7 billion compared to a $874.7 million loss in FY19. 

[CMStPnP]

In my view shortening / rationalizing the consists of the LD trains made sense and honestly I would like to see that stay in place after the pandemic.    Cutting back on the LD frequency I thought was shortsighted and will bite them financially later.   

I would have also used the pandemic to approach Congress to buy newer cars where passengers could sit in enclosed compartments during the day vs an open air coach for intercity.    I think Congress might have jumped on the idea of coach train travel where the passengers could be isolated by compartment in groups like they can do on a sleeping car.

Also would be lobbying Congress now for replacement Long Distance cars instead of waiting for later.    Once they lose nationwide support for the LD network, the Corridor trains become a LOT more difficult to get off the ground for startup.   It's a lesson Amtrak will learn about the time it is too late to reverse degradation of the LD network.