Five consecutive years of revenue growth, higher operating cost recovery; More investment needed to meet future passenger demand
Fiscal Year 2014 Highlights:
- Record revenue of approximately $3.2 billion
- Operating cost recovery rises to 93 percent
- Lowest federally funded operating loss in 41 years
- Moody’s confirms long-term debt rating at A1/Stable
WASHINGTON – Today, Amtrak reported unaudited record revenue totaling approximately $3.2 billion for the fiscal year ending Sept. 30, 2014, representing the fifth consecutive year of revenue growth, and the eighth out of the past nine years.
In FY 2014, America’s Railroad® covered 93 percent of its operating costs with ticket sales and other revenues, up from 89 percent the year before. In addition, Amtrak’s unaudited federally funded operating loss of approximately $227 million was the lowest level since 1973, representing a 37 percent decrease from the prior year and 52 percent lower than in FY 2007.
As a result of the company’s strong operating performance, long-term debt reductions of approximately 61 percent over the past seven years to $1.3 billion, and other contributing factors, Moody’s Investor Service confirmed Amtrak’s A1/Stable debt rating on Nov. 12, 2014.
“Our financial performance over the past year is the clearest indication yet that Amtrak’s investments, operating efficiencies and focus on its customers is paying off,” said Amtrak Chairman of the Board Tony Coscia. “Under the leadership of Amtrak’s Board and management, the company is transforming how it does business. We are delighted with our latest financial results and committed to making further progress in the years ahead. As we continue to make improvements in our operating and financial performance, we call upon the federal government and our stakeholders to support the capital investments necessary to keep moving Amtrak forward.”
“Our efforts to operate a more financially sound railroad for our stakeholders continues to exceed expectations,” said Amtrak President and CEO Joe Boardman. “Amtrak’s customer value proposition improves each year as seen by our continued ridership and revenue growth for the better part of the past decade.”
Amtrak’s corporate restructuring has resulted in a strong emphasis on increased financial transparency, a de-leveraged balance sheet, and providing an improved product to its existing customer base while attracting new passengers. This has resulted in consistently strong ridership and revenue growth, and less reliance on federal operating grant support.
Amtrak also is building the equipment, infrastructure and organization needed to ensure its strong growth continues. Over the past few years, the company has seen the expansion of state-supported services, the introduction of Wi-Fi and eTicketing technologies, the procurement of new equipment for Northeast Corridor and long-distance services, a major planning effort for the development of next-generation high-speed rail, and the installation of positive train control safety technology to more sections of track maintained by Amtrak, among other critical capital projects. These actions form the foundation that will support more and faster service, improve the reliability and safety of current and future operations, and meet the expectations of a growing number of customers choosing Amtrak for their travel needs.
Boardman added that to meet future passenger demands, increased levels of federal capital investment are needed to improve, expand and replace the aging infrastructure that supports intercity passenger rail. Predictable dedicated funding from the federal government to build new tracks, tunnels, bridges and other rail infrastructure—particularly on the Northeast Corridor and in Chicago—will keep Amtrak advancing and its customer base growing.