MTR to raise fares by around 3 percent in June

The MTR Corporation on Tuesday said it would raise ticket prices by 3.09 percent from June this year according to its fare adjustment mechanism - after the affordability cap kicked in. The fare formula takes into account various figures, such as the inflation rate, transport workers’ wages and the MTR's productivity factor, which is subtracted from the calculated amount. Inflation rose 2.4 percent year-on-year in December last year, and new government data showed the wages of transport sector workers had increased by 5.2 percent over the same period. After subtracting the productivity factor, which is linked to the firm's property profits, the fare change would be 3.2 percent. But the affordability cap, based on the fourth quarter’s median monthly household income, limited the fare rise to 3.09 percent. In a statement, the MTR said the decision had taken into account how affordable it would be to the public. “The 'affordability cap' arrangement has taken its effect this year in striking a balance between public affordability and the corporation’s need to maintain, upgrade and renew the railway system," said Jenny Yeung, a managing director with the MTR. The railway giant added it would continue to offer ongoing fare concessions to customers.