Student discounts cut LRT-2 revenue in June

MANILA, Philippines — Is the government’s higher discount for students dragging railway finances? Yes, it did, for Light Rail Transit Line 2 (LRT-2), as the railway transported more commuters but earned less revenue in June.

Based on data from state-run firm and LRT-2 operator Light Rail Transit Authority (LRTA), the railway logged a one-percent drop in revenue to P97.34 million in June from P98.18 million a year ago.

This happened even as the LRT-2 recorded a higher ridership that month, rising by nine percent to 4.46 million from 4.08 million on the opening of the new school year.

Notably, June also marked the start of the government’s higher discount program for students as initiated by the Department of Transportation (DOTr). President Marcos instructed the DOTr to raise the student discount on railways to 50 percent.

The discount covers all learners, including students in postgraduate schools, and can be availed every day, including holidays and weekends. The discount applies to all rail lines: LRT-1, LRT-2 and Metro Rail Transit Line 3.

In LRT-2, the discount slashed the cost of accessing the railway to a range of just P8 to P18 from P15 to P35 based on the regular rates.

Despite this, the LRTA is still on a path of financial growth this year, increasing its revenue by three percent in the first half to P641.17 million.

Passenger traffic at the LRT-2 also grew by six percent to 27.54 million, reflecting the demand in the Recto-Antipolo corridor where the University Belt is located.

As a government-owned and controlled corporation, the LRTA is tasked to raise as much revenue as it can to cover its own operations. The agency also requires capital to expand and upgrade the LRT-2 to support future demand as ridership goes up annually.

For instance, the LRTA is keen on pursuing the LRT-2 West Extension Project that aims to build three more stops after the Recto Station. LRTA administrator Hernando Cabrera said the project now costs P7 billion more, from its pre-pandemic estimate of P10.12 billion.

For the DOTr, Transportation Secretary Vince Dizon said the higher discount for students would allow them to incur savings they can use for other essentials, such as allowance and projects.