For Amtrak, Short Trips Are Route to Profitability

A new report from the Brookings Institution delves into the ridership and financial winners (and losers) for America's largest intercity rail operator. Last year, Amtrak made money on its 26 routes shorter than 400 miles.

2 minute read

March 1, 2013, 10:00 AM PST

By Jonathan Nettler @nettsj


Not only has Amtrak reached record levels of ridership, it's also the nation’s fastest growing mode of transportation says a new report out today from the Brookings Institution. By looking closely at how each of the federally subsidized carrier's more than 40 routes perform (by riders and by net revenue), the study's authors have found that it is essentially two systems in one, writes Brad Plumer. "One system is quite successful, the other isn’t."

"First," he explains, "there are Amtrak’s shorter passenger routes that run less than 400 miles and tend to connect major cities. Think of the Acela Express in the Northeast, or the Pacific Surfliner between San Diego and Los Angeles. These 26 routes carry four-fifths of Amtrak’s passengers, or 25.8 million riders per year. And they’re growing rapidly. Taken as a whole, these shorter routes are profitable to operate — mainly because the two big routes in the Northeast Corridor earn enough to cover losses elsewhere."

"Then there are Amtrak’s 15 long-haul routes over 750 miles. Many of these were originally put in place mainly to placate members of Congress all over the country, and they span dozens of states. This includes the California Zephyr route, which runs from Chicago to California and gets just 376,000 riders a year. All told, these routes lost $597.3 million in 2012."

With Congress regularly threatening to slash Amtrak's $1.4 billion in federal subsidies, what can be done?

"The Brookings report argues that Congress should arrange a deal with the states for these 15 longer money-losing Amtrak routes," says Plumer. "If a route is losing money, then the states that are in its path should negotiate how best to provide financial support and fill the hole. (Under this plan, they’d be allowed to use federal transportation funds.) If the states can’t or won’t chip in, then the routes get pared back."

"All told, a deal with the states could trim the need for subsidies by some $800 million per year — at that point, Congress would no longer need to cover Amtrak’s operating losses. The main thing the federal government would need to pay for is upgrades to the tracks that Amtrak currently owns in the Northeast Corridor."

Friday, March 1, 2013 in The Washington Post

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

2 hours ago - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

3 hours ago - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

4 hours ago - Newsweek

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.