Higher discounts, free rides erode LRT-2 revenue in 2025

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January 16, 2026 | 12:00am

MANILA, Philippines —  Revenue of the state-run operator of Light Rail Transit Line 2 (LRT-2) dropped last year as it offered free rides and higher discounts, a trend likely to continue this year.

The Light Rail Transit Authority (LRTA), operator of the railway spanning Recto Avenue in Manila to Antipolo, Rizal, said it expects revenue from fare collection to continue plunging in 2026.

Based on preliminary data, LRT-2’s passenger traffic went up by 10 percent to a record 58.75 million last year, from 53.29 million in 2024.

However, LRTA’s revenue collection dipped by two percent to P1.25 billion after reaching P1.27 billion in 2024. LRTA administrator Hernando Cabrera attributed the agency’s revenue decline to two things: higher discounts and Libreng Sakay rollouts.

“With more discounts and free rides, ridership goes up. However, this will not translate to higher revenues,” Cabrera told The STAR.

For 2026, the LRTA anticipates LRT-2 ridership to grow by three percent to a new high of 60.62 million, driven by the growing demand for faster modes of transit in eastern and western metro.

In spite of this, Cabrera said the LRTA only expects revenue of P1.1 billion this year, down by 12 percent from 2025’s total, considering the impact of welfare programs.

This is particularly painful for state-run entities like the LRTA, which is trying to raise capital for expansion projects and infrastructure upgrades for the benefit of commuters.

For instance, the LRT-2 West Extension Project requires P10.12 billion to expand the railway by three stations to the west of the Recto Station. The project – approved a decade ago in 2015 – is facing another year of uncertainty, having received zero allocation in this year’s budget.

Under the Marcos administration, the Department of Transportation has been pushing to alleviate the cost of commuting by train. Given this, President Marcos raised train discounts for students, persons with disabilities and senior citizens to 50 percent.

In December 2025, all rail lines offered free rides to various sectors in the 12 days leading to Christmas Day, with LRT-2 waiving fares for close to 566,000 passengers.

State-run firms like the LRTA rely on their own revenue generation to fund daily operations and maintenance projects, and when they fail to earn enough, they seek government subsidies.