tacticaltransfemme asked:

I was looking over Amtrak's financial report from FY2022 and I happened to read that "The Company [Amtrak] evaluated if its ongoing operating losses raise substantial doubt about Amtrak’s ability to continue as a going concern in the foreseeable future, considered to be through the end of December 2023, and concluded that the Company's forecasted cash flows, including anticipated Federal and state funding and credit arrangements, are sufficient to cover Amtrak's operations for the next year. Without Federal Government funding, Amtrak will not be able to continue to operate in its current form and significant operating changes, restructuring, or bankruptcy may occur." I would assume that federal funding will continue, however the fact that Amtrak felt the need to include this in the most recent financial report whereas it is absent in previous reports is what concerns me, but I would love to hear your thoughts on the matter.

Other statistics I found:

• In FY2023 Q2, only 6 of Amtrak's current lines broke even (see below)

Wolverine (Cost Recovery: 100%)
Downeaster (Cost Recovery: 101%)
Acela (Cost Recovery: 109%)
Washington-Richmond (Cost Recovery: 113%)
Auto Train (Cost Recovery: 118%)

• Amtrak (and its subsidiaries) had a net loss of $1,827,688,000 in FY2021
• Amtrak's largest asset was "Right-of-way and other properties" totaling $17,920,253,000
• Amtrak's second largest asset was "Available-for-sale securities, including restricted securities" totaling $2,900,521,000
• The least profitable line in FY2023 Q2 is the Illinois Zephyr/Carl Sandburg which only generated 18% of its operating cost
• The second least profitable line in FY2023 Q2 was the Sunset Limited which only generated 20% of its operating cost
• The line with the highest average ridership in FY2023 Q2 was the Auto Train with an average ridership of 399 passengers
• The line with the second-highest average ridership in FY2023 Q2 was the Northeast Regional with an average ridership of 259 passengers

Sources:

Federal Railroad Administration. “FY23 Q2 Financial Metrics  | FRA.” Railroads.dot.gov, U.S. Department of Transportation, 17 July 2023, railroads.dot.gov/elibrary/fy23-q2-financial-metrics. Accessed 16 Aug. 2023.

Amtrak. “National Railroad Passenger Corporation and Subsidiaries (Amtrak) Consolidated Financial Statements.” National Railroad Passenger Corporation, 30 Sept. 2022.

National Railroad Passenger Corporation. “Management’s Discussion and Analysis of Financial Condition and Results of Operations and Consolidated Financial Statements with Report of Independent Auditors.” National Railroad Passenger Corporation, 30 Sept. 2022.

Yeah the reason that’s said is because Amtrak is always at risk of losing funding from the government, just this year Republicans tried to cut the amtrak budget by 70%, what that is saying is basically Amtrak isn’t profitable and Federal Subsidies are still needed, so basically business as usual for Amtrak