KiwiRail says it will review the viability of its Tranz Alpine and Coastal Pacific scenic train services over the next 12 months.
The company's passenger business recorded a 24% drop in earnings for the year to June.
Kiwirail says the popularity of the services, which link Canterbury with the West Coast and Picton, continues to be affected by the lack of hotel accommodation in Christchurch.
Speaking at the company's annual public meeting in Wellington on Friday, KiwiRail chair John Spencer said passenger numbers on the scenic services have declined by 14%.
To be profitable, he said, the daily Tranz Alpine service needs 80% occupancy, but it is usually less than half full.
Mr Spencer said freight revenue was up by 15% in the year to June but he's disappointed the company did not reach its financial targets for the period.
About 20 Green and Labour party members, as well as representatives of the youth organisation Generation Zero, held a protest outside the meeting.
Labour MPs Phil Twyford and Moana Mackey spoke to the demonstrators, criticising the company for deciding last month to mothball the Gisborne-Napier line.
Ms Mackey said the cost-benefit analysis used to justify the decision is flawed.
Mr Twyford also said the announcement in September that about 150 jobs will be axed from the rail network shows the Government is under-investing in vital infrastructure.
