- Richard Anderson took over Amtrak in July 2017 after nine years leading Delta Air Lines, where he helped turn around the bankrupt airline. Amtrak had never made a profit since 1971, but its latest annual loss had narrowed to $30 million, with break-even projected for 2020.
- Every Amtrak long-distance route lost money, costing the company more than $500 million annually. Losses ranged from $12 per passenger on the Palmetto to $456 on the Sunset Limited, while only 43% of long-distance trains arrived on time in 2018.
“Every single one of Amtrak’s long-distance routes lose money.”
- Amtrak faced accusations that questionable accounting made long-distance trains appear more unprofitable than they really were. Examples included $3 million in electric-equipment maintenance outside the Northeast Corridor, allocating all baggage-handling costs to long-distance services, and charging Miami station for snow removal.
“The last time it snowed anywhere close to Miami was 1977.”
- The Northeast Corridor was Amtrak's financial lifeline, earning almost $25 per Northeast Regional passenger and more than $80 per Acela passenger. Amtrak owned most of the tracks between Washington and Boston, giving it greater reliability and control than on freight-owned tracks elsewhere.
- Amtrak planned four Northeast Corridor service tiers to capture more passengers and premium fares. They ranged from a proposed Richmond–Portland local service to nonstop Acela trains, with the first Washington–New York nonstop launched in September 2019 at 2 hours 35 minutes, saving approximately 15 minutes.
- State-supported short-distance trains were collectively close to breaking even, making expansion an attractive alternative to long-distance losses. Washington–Lynchburg earned nearly $40 per passenger while Fort Worth–Oklahoma City lost over $30, and new routes would probably depend on state subsidies.
- Private railway companies threatened to capture two promising markets before Amtrak could expand into them. Texas Central proposed a 90-minute Dallas–Houston high-speed line, while Virgin Trains USA pursued Southern California–Las Vegas after establishing an operating private railway in Florida.
- Congress wanted Amtrak to reduce losses while protecting long-distance trains that crossed more than 40 states. Some of Amtrak's roughly 500 stops provided towns with their only public transportation link, making route closures politically costly despite their potential financial benefits.
“the company’s purpose is to connect America, and there’s a whole lot more to America than a four-hour radius around the largest cities.”