Brightline’s South Florida ticket revenue lags as long distance fares rise

Brightline’s ridership and ticket revenue rose in November, but its South Florida-only service brought in less revenue growth than its increase in passengers as the company rolled out lower fares and a revamped schedule.

Brightline reported that ridership between its five South Florida stations jumped 21% from a year earlier, while revenue from those passengers grew 4% as average fares fell 14%.

November was the first full month under Brightline’s redesigned service and fare structure. The company added more South Florida trains in the mornings and afternoons, aiming to attract more daily commuters. It also introduced a pricing strategy for regional riders tied to departure times, with fixed “peak” and “off-peak” pricing.

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.”

On the company’s long distance service, fares between Miami and Orlando averaged just over $80 in November, the highest since March. Brightline said that helped boost long distance revenue by 21% compared with a year earlier, as ridership rose 9%.

Brightline credited record long distance revenue of $13.7 million with lifting its total November income. The company said it had 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.

Brightline said its monthly revenue and ridership reports do not include audited financial results. The company reported total revenue so far this year is up 14% to $193.4 million. It has not disclosed its latest quarterly operating and financing costs.

Brightline also told lenders it will use financial reserves to make some or all of an interest payment due Jan. 1. The company said it is negotiating to take 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.” Brightline had at least $2 billion of debt at the end of last year.

The company has also been seeking to sell what it described as a “substantial” ownership portion of the business to raise funds.

Separately, Florida East Coast Railway, which owns the tracks Brightline uses, sued Brightline in August. Florida East Coast Railway 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.

The Miami Herald also reported this week that a former Brightline conductor filed a $60 million federal lawsuit accusing Brightline 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.