Amtrak is a conundrum that has been difficult for both politicians and Amtrak managers to solve.
Click image to download a four-page PDF of this policy brief.
- Politicians and the media act as if it is an important mode of travel, yet it carries less than 1 percent as many passenger miles as domestic airlines and just 0.1 percent of total domestic passenger miles.
- Rail advocates claim intercity passenger trains are economically competitive, yet Amtrak fares per passenger mile average nearly three times airline fares, and when subsidies are added Amtrak costs four times as much per passenger mile as the airlines and well over twice as much as driving.
- Amtrak claims that some of its trains earn a profit and overall passenger revenues cover 95 percent of its costs, yet even the Rail Passengers Association, the leading supporter of intercity passenger trains, believes Amtrak’s accounting methods misrepresent reality.
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