Summary: Amtrak's financial condition continues to deteriorate. Although Amtrak was able to reduce its net losses from about $892 million in 1994 to $762 million in 1997, the 1997 loss would have been $63 million higher were it not for one-time increases in revenue from the sales of real estate and access rights for telecommunications. Prospects for fiscal year 1998 are not bright, with Amtrak projecting losses of $845 million. Amtrak hopes to improve its financial situation by increasing revenues through such measures as expanding mail and express services and introducing high-speed rail service between New York City and Boston. However, Amtrak has had to substantially scale back its net revenue projections for express business, and positive net income from the high-speed rail program is two years away. Amtrak has no plans to reduce routes, even though only one of its routes--the Metroliner service between Washington, D.C., and New York City--makes money. Federal funding and recently enacted reforms will not solve Amtrak's financial problems.
