LRTA on track to book record-high fare income

January 2, 2025 | 12:00am

MANILA, Philippines — The Light Rail Transit Authority (LRTA) will post another record income from fare collection at the Light Rail Transit Line 2 (LRT-2), boosting its war chest for spending requirements this year.

Based on LRT data, revenue from rail operations grew to P1.17 billion from January to November 2024, up by 18 percent from P988.39 million the year prior.

The amount has exceeded the previous record of P1.1 billion in 2023 even though the LRTA has yet to tally its ticket sales for December 2024.

Likewise, the LRT-2 is on pace to reach the 50-million mark on ridership for the first time since the pandemic. As of November 2024, passenger traffic at LRT-2 has increased by eight percent to 48.58 million on the resumption of onsite work and schooling.

In 2023, the railway ferried 49.43 million passengers, marking the reemergence of public transit post pandemic. LRT-2 tallied its highest ridership of 56.98 million prior to the pandemic in 2019.

The LRTA, as a state-run firm, requires as much funds as it can generate from its own operations and get from the government as a subsidy.

Aside from fare collection, the LRTA earns from non-rail businesses like advertising and leasing, expanding its income sources to sustain operations and maintenance.

For 2025, the LRTA will require more than P1 billion to fund its programs and projects aimed at improving commuting experience at LRT-2.

The agency needs P211.69 million for the procurement of spare parts to build up its inventory. This way, the LRTA can run LRT-2 with minimal or no downtime.

Similarly, LRTA requires P321.44 million to pay for the maintenance of the railway. LRT-2 frequently undergoes a series of checks for passenger safety and sustained reliability.

However, the Department of Transportation, the parent of LRTA, has failed to receive an allocation in the national budget for the rehabilitation of both LRT-1 and LRT-2.

Without this, the LRTA has to rely more on its own revenue efforts to fund capital expenditures this year.