Amtrak's financial losses are projected to widen this year despite rising ridership, the top executive of the government-subsidized rail system said Tuesday. Amtrak blames the red ink on rising compensation costs for union workers and increased costs for fuel, materials and other expenses. Amtrak is making money on its heavily traveled Northeast Corridor between Boston and Washington, serving mostly commuters, executives said. But money-losing, long-distance routes are a drag on the bottom line, Amtrak says.
Amtrak officials project an operating loss of $506 million in the fiscal year ending Sept. 30, up from a loss of $419.9 million last year. Officials have projected a loss of $616 million next year.
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