By David Shepardson
WASHINGTON (Reuters) -U.S. passenger railroad Amtrak said on Tuesday it set a yearly record for ridership and revenue, as it cut losses by 15% to $598 million and aims for operational profitability by 2028.
Amtrak, which is in the midst of a massive effort to rehabilitate aging infrastructure along the busy northeast corridor between Boston and Washington, is increasing service across the United States, buying new higher-speed Acela train cars and has said it will replace regional trains starting next year.
In the 12 months ending September 30, Amtrak said it had 34.5 million customer trips, up 5.1%, with operating revenue 9.1% higher at $3.9 billion, even with less capacity.
The White House in March forced Amtrak CEO Stephen Gardner to step down after President Donald Trump sought the changes.
MORE CAPACITY
Amtrak’s board has not named a new CEO, but Amtrak President Roger Harris is running operations.
“The critical thing for us now is to get more capacity,” Harris said in an interview, adding that the new Acela trains are 27% bigger and new regional trains are coming next year. “I think it’s better product, more capacity.”
With congested highways and air travel often facing volume or technical problems, more people were considering Amtrak, Harris said.
The White House in October paused paying reimbursements for the $17.2 billion Hudson River tunnel project, which received more than $11 billion in federal grants and is seen as critical for improving train service between New York and New Jersey.
Amtrak has gotten about $2.4 billion in annual government funding in recent years — on top of $22 billion approved in 2021 over five years for major projects.
During the recently ended government shutdown, the longest in U.S. history, Harris said Amtrak had enough cash on hand “to sustain the projects” and did not expect it would result in any delays.
Asked if Amtrak would name a new CEO, Harris said he did not know. “They’ve been letting us run the company for the last eight months and I think they’re pretty happy with the situation,” Harris said.
U.S. Transportation Secretary Sean Duffy praised the railroad’s growth. In September, USDOT announced it had reclaimed management of Washington’s Union Station, one of the country’s biggest rail hubs.
“Faster trains, more affordable service, and extended routes are opening up a new era of American rail,” Duffy said.
(Reporting by David ShepardsonEditing by Bill Berkrot)
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