The Amtrak Boondoggle: Economic Loser And Accounting Cheat

Second, Amtrak doesn’t count the second biggest operating cost on its expense sheet: depreciation. Depreciation is not just an accounting fiction; it is a real cost indicating how much a company needs to spend or set aside to keep its capital improvements running. After correcting these two tricks, passenger revenues cover only 55 percent of operating costs and none of the trains earn a profit.

 

 

 

 

 

 

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