LRT-2 Revenue Falls 28.2% as Fare Discounts Outweigh Ridership Gain
Key Takeaways
- •The LRTA's revenue dropped 28.2% to P676.48 million in the first nine months of the year, from P942.34 million a year earlier, despite carrying 48.32 million passengers, a 15% year-on-year increase.
- •The Department of Transportation ordered a 50% fare discount on LRT-2 and MRT services after the government declared an emergency in response to the Iran war, reducing per-trip payments for commuters.
- •Third-quarter revenue declined 35.4% year on year to P194.58 million, even though ridership in the July-to-September period rose 14.3% to 16.57 million passengers.
- •For 2026, the LRTA aims to collect P1.1 billion in fare revenue from 60.62 million passengers, an average daily traffic of about 165,624, which would surpass the 56.98 million riders recorded in 2019.
- •The DOTr is collaborating with the International Finance Corp. on a plan to privatize LRT-2 through a public-private partnership intended to expand the rail line and boost ridership.
MANILA — The state-run Light Rail Transit Authority (LRTA) posted a 28.2% drop in revenue in the first nine months of the year, as fare discounts on Light Rail Transit Line 2 (LRT-2) offset a rise in passenger traffic.
Revenue fell to P676.48 million in the January-to-September period from P942.34 million a year earlier, based on LRTA data. Passenger traffic rose 15% year on year to 48.32 million passengers. With commuters paying half the regular fare, however, the additional ridership was not enough to keep collections at year-ago levels.
The decline in collections followed the Department of Transportation's (DOTr) order granting a 50% fare discount on LRT-2 and Metro Rail Transit (MRT) services after the government declared an emergency in response to the Iran war. The discount applied to both metro rail lines, directly reducing what commuters paid per trip.
Third-quarter results reflected the same pattern, with revenue down 35.4% from a year earlier to P194.58 million, even as ridership in July to September increased 14.3% to 16.57 million passengers.
For 2026, the LRTA is targeting fare revenue of P1.1 billion and ridership of 60.62 million passengers, equivalent to average daily traffic of about 165,624 passengers. If achieved, annual ridership would exceed the 56.98 million passengers recorded in 2019, the last full year before the pandemic. The revenue goal also stands well above the P676.48 million collected in this year's first nine months, when discounted fares weighed on takings.
LRT-2 serves an east-west corridor of Metro Manila and is overseen by the LRTA, an agency attached to the Department of Transportation.
Separately, the DOTr is working with the International Finance Corp. (IFC), the private-sector arm of the World Bank Group, on the planned privatization of LRT-2 through a public-private partnership. The government aims to use private sector participation to expand the rail line and increase ridership. Progress on the privatization plan, and the line's performance against its 2026 targets, are the next developments to track.
— Ashley Erika O. Jose, BusinessWorld
Source: BusinessWorld
