The rise in Light Rail Transit Line 2 (LRT-2) ridership has failed to translate to higher income for its regulator due to the government order to give out higher discounts to select sectors.
Based on data from LRT-2 manager Light Rail Transit Authority (LRTA), passenger traffic in LRT-2 grew by eight percent to 42.04 million in the nine months to September, from 38.9 million a year ago.
LRT-2 posted its highest passenger volume in the pandemic aftermath in September of 5.15 million, beating the previous high of 5.1 million in August.
In spite of this, the LRTA booked a one-percent uptick only in revenue to P942.33 million as of September. This can be attributed to higher discounts granted to students, persons with disabilities and senior citizens.
President Marcos instructed the Department of Transportation (DOTr) to increase the discount on railways to 50 percent, from 20 percent. For students, the discount also covers all learners, and it can be availed every day, even on holidays and weekends.
In LRT-2, the discount reduced the cost of riding the LRT-2 to a range of just P8 to P18, from P15 to P35 on the regular.
Since the higher discount was rolled out in June, the LRT-2 has seen monthly hikes in ridership, but revenue failed to keep up, dropping instead with the exception of August.
LRT-2 serves a large population of students in its ridership, especially as the Recto-Antipolo corridor is host to dozens of schools, particularly in the University Belt.
As a government-owned and controlled corporation, LRTA is mandated to generate as much revenue as it can to fund its own operations. The agency also needs capital to upgrade the LRT-2 to prepare for future demand as ridership goes up.
For instance, LRTA plans to pursue the LRT-2 West Extension Project that seeks to add three more stops after the Recto Station. The project is estimated to cost P10.12 billion, as it covers the purchase of new light rail vehicles, too.
In spite of the financial drag, the DOTr appears committed to keeping the 50-percent discount in place, eyeing to maintain it until the end of the Marcos administration in 2028.
In September, railway managers like the LRTA started distributing specialized stored value cards to students to easily avail themselves of the discount.