LRT-2 traffic up, but revenue dips

MANILA, Philippines — The Light Rail Transit Line 2 (LRT-2) is suffering from a double-digit revenue freefall due to the higher discounts granted to students, senior citizens and persons with disabilities (PWD).

In a report, LRT-2 operator Light Rail Transit Authority (LRTA) reported that revenue from fare collection plunged  by 23 percent to P421.4 million as of May from P543.83 million a year ago.

On the other hand, the LRT-2’s passenger traffic has grown by 16 percent to 26.68 million from 23.08 million, with all months to May recording above five-million volume except for April.

All months to May also posted increased traffic compared to their year ago levels. However, the LRTA saw fare collection going down every single month so far this year.

As previously reported by The STAR,  LRT-2 is expecting its fare revenues to plunge this year because of two factors, namely, higher discount and Libreng Sakay rollouts. Last year, for instance, revenue decreased by two percent to P1.25 billion, but traffic went up by 10 percent to 58.75 million.

For 2026, LRTA administrator Hernando Cabrera said LRT-2 is estimated to hit a new high in passenger volume to 60.62 million.

However, the LRTA expects fare collection to shrink by 12 percent to P1.1 billion because of the welfare programs rolled out by the agency.

As ordered by President Marcos to the Department of Transportation, all railways have increased the fare discounts for students, senior citizens and PWDs to 50 percent from 20 percent.

Although the initiative benefits indigent commuters, it hurts the income of state-run entities like the LRTA. The agency is trying to raise funds for expansion projects and infrastructure upgrades.

For one, the LRT-2 West Extension Project requires P10.12 billion to stretch the railway by three stops to the west of the Recto Station. The project, approved a decade ago in 2015, was allocated zero funds in this year’s budget.