The Light Rail Transit Line 2 (LRT-2) experienced an increase in ridership but saw a double-digit decline in revenue, according to Philstar Biz. The revenue drop is attributed to higher discounts extended to students, senior citizens, and persons with disabilities (PWDs).
The mandated discounts, which include a 20% fare reduction for students and senior citizens and a 20% discount for PWDs, have significantly cut into the rail line's earnings. Despite a rise in passenger volume, the revenue decline poses challenges for operational sustainability.
The LRT-2 situation reflects a broader trend in public transportation where social discount policies impact financial performance. Operators may need to explore cost-saving measures or seek government subsidies to offset the revenue losses while continuing to serve these passenger segments.