Actually, I thought there were some passenger rail companies that were profitable. The tickets are very expensive, but the quality of service is unparalleled by any other non-oceanic mode of travel. The idea is that rather than paring service to the point that people will use the train as a means of getting from point A to point B, the companies enhance the service so that people enjoy the trip itself, rather than the fact that they eventually get to their destination.
You are describing luxury tour trains and -- yes, you are correct -- they make a lot of money.