- Amtrak anticipates losing several hundred million dollars in revenue during the fiscal year because of coronavirus, according to a leaked memo from a railway executive to employees.
- Amtrak's future bookings plunged 50%, and cancellations rose more than 300%.
- Amtrak will scale back service in certain regions to cut costs during the outbreak.
- Visit Business Insider's homepage for more stories.
Amtrak faces dire losses in the wake of coronavirus, according to a leaked memo from the train company's leadership Wednesday.
The havoc of the novel coronavirus has left no transportation industry untouched, and the economic repercussion of the virus has sent Amtrak into a financial spiral that may leave the company out "several hundred million dollars."
Amtrak's future bookings took a 50% dive year-over-year, and their cancellation rate jumped to more than 300% according to the leaked memo seen by Business Insider and first reported by Politico's Sam Mintz.
Tweet Embed:
//twitter.com/mims/statuses/1237806784200560642?ref_src=twsrc%5Etfw
Amtrak is taking an absolutely massive hit from coronavirus.
Expected losses of hundreds of millions of dollars. Bookings are down 50% and cancellations up 300%.
And planning "significant reductions in train service across portions of our network" according to memo from COO.
Amtrak aims to mitigate the damage as much as possible and will start by scaling back train services in certain areas, according to the memo.
"You should expect significant reductions in train service across portions of our network in response to the sharp drop in ridership," Stephen Gardner, senior executive vice president and chief operating and commercial officer, wrote in the memo.
Some of the steps to cut costs also include instituting a voluntary leave program for non-essential employees that are willing to take unpaid time off.
Amtrak told employees the train service is communication with the government, including Congress and other federal policymakers, about the issue.
"In the meantime, we must conserve our resources, putting them to use as efficiently as possible and in ways that continue to drive safety and advance our future, so that when things get back to normal, we are ready to grow and prosper," Gardner wrote.
The memo's solemn tone stands in stark contrast to the reassuring email sent to Amtrak customers about the railway's increased efforts to keep services clean, provide sanitizing products to customers and employees, and offer no-charge fees on bookings after April 30.
The reduction in services will affect trains in the Northeast Corridor, according to both to the email sent to customers and the memo sent to employees. Three trains between New York and Washington are temporarily suspended. Amtrak reassured customers and employees that an adequate alternative would be offered within 30 minutes before and after the canceled trains scheduled departures.
Featured Digital Health Articles:
- Telehealth Industry: Benefits, Services & Examples
- Value-Based Care Model: Pay-for-Performance Healthcare
- Senior Care & Assisted Living Market Trends
- Smart Medical Devices: Wearable Tech in Healthcare
- AI in Healthcare
- Remote Patient Monitoring Industry: Devices & Market Trends
Next Story
2 states where home prices are falling because there are too many houses and not enough buyers
US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
9 health benefits of drinking sugarcane juice in summer
10 benefits of incorporating almond oil into your daily diet
From heart health to detoxification: 10 reasons to eat beetroot
Why did a NASA spacecraft suddenly start talking gibberish after more than 45 years of operation? What fixed it?
ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore
