LRT-2 passengers, profit double in H1

MANILA, Philippines — The Light Rail Transit Line 2 (LRT-2) doubled both its passenger traffic and ticket collection in the first semester buoyed by the resumption of onsite schooling.

Based on data, LRT-2’s passenger footprint more than doubled to 23.17 million between January and June from a year-ago level of 11.21 million.

During the six-month period, LRT-2 registered its highest monthly ridership in March at 85.61 million, also the highest turnout in more than three years since September 2019’s 110.88 million.

This helped the Light Rail Transit Authority (LRTA) to double its revenue collection from the rail segment.

The ticket sales of the operator of LRT-2 more than doubled to P476.14 million in the first semester from P234.95 million in the same period last year.

The LRTA deploys a total of nine train sets on the average during peak hours.

LRT-2 has recorded a load factor of 73.3 percent as of June, signaling that passenger demand for the rail line is normalizing.

The LRTA sees LRT-2 ridership hitting 55.91 million this year, nearing the pre-pandemic total of 56.98 million in 2019.

It is banking on the return of face-to-face schooling in Metro Manila to drive up the passenger count for LRT-2, especially as the western portion of the railway runs through the University Belt.

It also aims ticket sales to hit at least P1.09 billion this year, surpassing the record P1.07 billion pre COVID-19 pandemic level in 2019.

The railway operator could increase its revenue target to as much as P1.2 billion for 2023 with help from a fare hike.

However, the LRTA was allowed to collect additional fares only on Aug. 2, as President Marcos deferred the rate adjustment when it was approved by the Department of Transportation in April.

It also expects non-rail earnings to go up, particularly from advertising, now that the economy is recovering from a pandemic lull.

For 2023, the agency estimates P123 million worth of non-rail revenue, the bulk of which will come from land lease, right of way and ad contracts.

The LRTA has to improve its revenue generation not just to sustain LRT-2 operations, but also to pursue expansion plans.