Amtrak seeks another billion-dollar bailout
Rail operator Amtrak is seeking an additional bailout of nearly $1.5 billion as it announced plans to cut its workforce by up to 20%.
It bagged more than $1 billion in emergency funding from Congress but needs even more to see it through the Covid-19 crisis.
It says ridership levels have plunged by 95% since travel restrictions were brought in.
It plans to cut about one in five jobs during the coming budget year.
"It is clear we have no choice but to reduce our overhead structure to better align our costs with our revenues," CEO Bill Flynn told employees in a memo, Reuters reported.
"This reduction is necessary to ensure we have a sustainable Amtrak that can continue to make critical investments in our core and long-term growth strategies, while also keeping safety as our top priority."
It now expects full-year revenue to be down by 50%.
It estimates revenue will fall by about $1.6 billion for the year.
Without extra funding it may have to suspend some long distance routes.
Amtrak also plans to reduce operating costs by about $500 million.
The extra funding request is in addition to the $2 billion it gets annually from Congress.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
In Italy, the Meloni government congratulates itself for its tourism achievements