Ridership and ticket revenue is climbing for Brightline, except for fares for its original business — shuttling passengers between train stations in South Florida.
Brighline’s short distance service experienced more riders in November than it did a year ago as passengers were attracted to catch the train with lower fares. While ridership between its five stations in South Florida jumped 21% from a year ago, revenue from those passengers grew by only 4% as average fares tumbled 14%.
November was the first full month of Brightline’s redesigned service and fare structure. It has added more South Florida trains in mornings and afternoons, hoping to encourage more daily commuters. It accompanied the schedule changes with a new pricing strategy for regional riders based on departure times. Off-peak pricing for a trip between Boca Raton and Fort Lauderdale fell to $13. The most expensive South Florida ticket during peak times, between Miami and West Palm Beach, is $39.
“We believe the change to fixed ‘peak’ and ‘off-peak’ pricing structure is attractive for frequent short distance customers who prefer consistency of pricing,” Brightline wrote in its November update to bondholders. “Long distance pricing will continue to be dynamic based on market demand and days to departure.”
Fares for a ride between Miami and Orlando averaged just over $80 last month — the highest since March. That helped boost long distance revenue by 21% in November versus a year ago as ridership was up 9%.
Brightline credited the record long distance revenue of $13.7 million for increasing its total November income. The service did a $1 million revenue day on the Sunday after Thanksgiving when it charged a record $101 for a trip between South Florida and Orlando.
“The FAA flight reductions, due to the government shutdown, drove several days of increased ridership during the month,” Brightline said. The federal government shutdown ended Nov. 12.
The company’s monthly revenue and ridership reports do not include audited financial results. Brightline said total revenue so far this year is up 14% to $193.4 million. It has not disclosed its latest quarterly operating and financing costs.
However, Brightline alerted its lenders it will use its financial reserves to pay some of all of an interest payment due on Jan. 1. It also acknowledged it is negotiating taking on another $100 million of debt “to be used to provide liquidity for the company's ongoing operating requirements, as well as to provide additional liquidity in the event funds are needed to address potential adverse outcomes of certain litigation.”
The company had at least $2 billion of debt at the end of last year.
It also has been looking to sell a “substantial” ownership portion of the company to raise funds.
The owner of the tracks upon which Brightline runs its trains, Florida East Coast Railway, sued Brightline in August. FECR claims Brightline broke its contract by negotiating an agreement with South Florida county governments to operate commuter rail service. The two entered arbitration in November.
READ MORE: South Florida commuter rail project in limbo after latest ruling on Brightline lawsuit
This week, the Miami Herald reported a former Brightline conductor filed a $60 million federal lawsuit accusing the service and its parent company, Fortress Investment Group of creating an unsafe work environment. The conductor said he was diagnosed with Post-Traumatic Stress Disorder by Brightline after witnessing fatal train crashes with pedestrians and vehicles.
Brightline has not been found at fault for any of the crashes.
