Amtrak board meeting reveals strong performance metrics but sidesteps upcoming challenges: Analysis

WASHINGTON — Overall revenue is up, costs are being contained, expansion plans remain on track, and Amtrak is taking detailed steps to ensure summer 2024 problems on the Northeast Corridor in New Jersey won’t happen again.

That’s a summary of issues covered in the live-streamed public portion of an Amtrak board meeting held today (May 22, 2025) to update financial, commercial, and operational matters.

While the board awaits Senate confirmation of Pennsylvania Republican Robert Gleason to its remaining open slot Democrat Anthony Coscia continues as chairman [see “Amtrak board nominee Gleason …,” Trains News Wire, May 13, 2025]. Republican Joel Szabat has assumed the role of vice chairman.

Board members heard more than an hour of presentations from department heads who summarized year-to-date operating results evaluated against previously developed “plan” metrics, as well as forward-looking initiatives.

Some highlights:

— Solid increases in Northeast Corridor, state-supported, and long-distance ridership and revenue have been driven by better equipment utilization and increased capacity. This has resulted in improvements in revenue versus costs per available seat-mile, according to Deputy Chief Financial Officer Costin Corneanu. However, Acela has lagged Northeast Regional gains.

— Chief Commercial Officer Eliot Hamlisch said revenue is up 5.9% in April, but has been negatively impacted by recent withdrawal of the Horizon car fleet, especially in the Pacific Northwest’s Cascades and Chicago-Milwaukee Hiawathas.

— The Borealis success story was highlighted by Vice President of Network Development Nicole Bucich [see “Amtrak’s Borealis marks first anniversary …,” News Wire, May 21, 2025]. Bucich said additional frequencies are contemplated by the three California corridors; extensions of New Haven-Springfield, Mass., shuttles to Boston are being considered; and Wisconsin is studying an additional Twin Cities route that might include Eau Clare and the state capital in Madison.

— How the company is executing major Northeast Corridor projects such as the Connecticut River Bridge and beefing up New Jersey track infrastructure and power delivery for summer was discussed at length by Liam McQuat (engineering vice president), Gery Williams (service delivery executive vice president), and others. Together, the projects represent the largest capital program in Amtrak history. A major concern, however, is that billions of dollars in the three capital funding “buckets” to pay for the work are in uncertain stages of being awarded, obligated, or appropriated.

After the presentations, three board members asked questions.

Chris Koos wondered whether there were any supply chain issues in obtaining all of the electrical components the company needed to implement the Northeast Corridor upgrades. He was told that there have not been any problems so far.

Joel Szabat understood that with only 15 of 20 legacy Acelas operational, the pricey product was lagging behind Northeast Regional ridership and revenue increases, but wondered whether the next generation Acela trainsets would be running a year from now and if Amtrak could fill the seats. Hamlisch said the assumptions were “generally correct,” the new Acelas would increase capacity by 50%, and the company is “very confident there is demand out there for the service.”

Elaine Clegg, the board member from Idaho, said she was glad Hamlisch and Corneanu explained why long-distance service operating profitability can’t approach what the Northeast Corridor achieves. She asked whether the “easiest path” for long-distance expansion would be on routes with state-supported service. “I think that’s a fair assumption,” Hamlisch said, and acknowledged that without new equipment to expand capacity or routes, the national network’s financial performance could only be improved by “driving incremental demand and cost containment.”

Among issues not discussed, at least during the public session:

— How will extensive managerial and oversight job cuts affect the many complicated, high-ticket capital projects underway? [See “Amtrak trims management workforce,” May 7, 2025.] A document obtained by News Wire shows 79 of the slots to be axed are positions in engineering; asset, project, and program management; information technology; and procurement.

— Where does acquisition of bi-level, long-distance equipment stand? The Request for Proposals has been revised several times because manufacturers have balked at the complicated specifications [see “Amtrak inspector general report …,” Dec. 18, 2024]. News Wire has learned from several sources that the RFP process has been “paused” indefinitely.

— What exactly is holding up Alstom’s NextGen Acela delivery, when and how many trainsets will be placed in service initially, and how will these trainsets be maintained when servicing and commissioning facilities for them have not been completed in Washington, New York, or Boston? A presentation slide connected with the Siemens Aero procurement indicated that facilities for that equipment won’t be ready at Washington’s Ivy City yard and Boston Southampton until 2028, but nothing was said about the new Acelas, which are too long to fit into buildings where legacy Acelas are serviced.

— What will Amtrak seek in its Grant and Legislative Request? The company has said it is waiting to see what the President has in mind [see “Trump budget mum…” May 2, 2025], but there must be a strategic plan waiting in the wings.

Online participants were able to ask questions in a chat, but others weren’t able to see what was asked and were told, “We won’t have time to answer questions today.” Additional queries can be emailed to publicmeeting@amtrak.com.