Florida's high-speed rail line reported a financial loss of $116 million for the first quarter of 2024, according to the South Florida Business Journal.
Brightline said that although it was able to rake in nearly $50 million in revenue between January and March, largely due to increased ticket sales, its quarterly losses had doubled from the same period last year, the Journal reported, citing the company's quarterly unaudited financial statement.
The surge in revenue was attributed to the launch of long-distance service between South Florida and Orlando in September, which drew additional passengers and boosted ticket sales.
However, this revenue growth was overshadowed by a sharp rise in operating expenses, which more than doubled due to the costs associated with the new long-distance service. The operating costs increased by $23 million more than the revenue generated from ticket sales and other sources.
Newsweek contacted Brightline Rail for comment on this story outside of working hours via email.
To address financial challenges, Brightline implemented a significant fare increase in June, raising the cost of a popular multi-ride package for South Florida riders. The new pricing saw a 250% increase in cost per ride, altering the 40 one-way tickets for $400 package to 10 rides for $350.
"In recent months, it has become increasingly difficult to accommodate all guests as peak trains are reaching capacity," the company said at the time.
The Brightline Florida rail system is comprised of 235 miles of track, connecting Miami and Orlando, with additional stations located in the downtown centers of Aventura, Fort Lauderdale, Boca Raton and West Palm Beach.
Also underway is Brightline West's High-Speed Intercity Passenger Rail System which aims to link Las Vegas to Southern California via a 218-mile route.
The new line, expected to reach speeds of up to 200 mph, is billed to reduce travel time to just two hours.
The project, funded through a mix of federal grants and private capital, has received an estimated investment of around $12 billion and aims to wrap up construction by 2028, coinciding with the Los Angeles Olympics.
Speaking at the groundbreaking ceremony, U.S. Transportation Secretary Pete Buttigieg said: "Partnering with state leaders and Brightline West, we're writing a new chapter in our country's transportation story that includes thousands of union jobs, new connections to better economic opportunity, less congestion on the roads, and less pollution in the air."
In related news, the first station designs for the long-planned California High-Speed Rail system were unveiled last month.
The designs were for the Merced, Fresno, Bakersfield and Kings Tulare stations.
We are developing an architectural language for the four Central Valley stations, including soaring canopies that draw in fresh air and shield waiting passengers from harsh sunlight. The station design reflects the sustainable ethos of the wider project," said Stefan Behling, head of studio at designers Foster + Partners.
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Correction, 7/15/24, 8 a.m. ET: This article was updated to clarify that the Orlando extension has already been completed. It was also updated to clarify the financial statement for the first quarter of 2024 was not released in July.
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Joe Edwards is a Live News Reporter based in Newsweek's London Bureau. He covers U.S. and global news and has ... Read more
