Hong Kong’s MTR Corp freezes fares for first time since 2023 formula reform
The freeze takes into account affordability, company’s profitability and wage index for transport sector workers
Hong Kong’s MTR Corporation rail giant has said it will keep train ticket prices the same this year – the first time it has frozen fares since its pricing formula was reformed in 2023 – with ongoing concessions to be continued.
The company made its announcement on Friday. The fare freeze took into account affordability, the company’s productivity and profitability, including gains from property development, as well as a wage index for transport sector workers.
The calculations registered a 1.45 per cent increase, just shy of the threshold of 1.5 per cent that would trigger a fare rise.
The MTR said it would continue to offer fare concessions for commuters, such as the “City Saver” scheme and a 50 HK cents interchange discount for all green minibus routes. The monthly pass and early bird discount will be extended for another year.
These concessions cost the MTR HK$3.1 billion (US$399 million) last year.
“The freezing of MTR fares this year demonstrates the mechanism’s considerations of public affordability,” said Jeny Yeung Mei-chun, the corporation’s Hong Kong transport services managing director.
The MTR Corp said: “The ‘Affordability Cap’ arrangement ensures that the actual fare adjustment rate does not exceed the change in the median monthly household income over the same period.”