Airport Express proposes fare increase amid rising costs and planned upgrades

For the first time in eight years, the Airport Express has proposed a fare increase of approximately 9.4 percent, expected to be implemented in June.

This proposal comes as the number of tourists visiting Hong Kong has not fully rebounded post-pandemic, and energy costs have surged in recent years.

Near 14pc inflation in 7 years

The MTR Corporation, which operates the Airport Express, has not raised fares during this period. The company stated that the cumulative inflation over the past eight years has exceeded 13 percent, and operating costs have significantly increased.

Additionally, investments are planned to improve facilities, necessitating a fare adjustment to achieve financial balance. However, fare discounts will be offered to accommodate different passenger groups.

The rail giant has submitted a document to the Legislative Council's Panel on Transport proposing that the adult Octopus card fare for the Airport Express will increase by HK$5 to HK$10, and the single-journey ticket price will increase by HK$10 to HK$15.

Under the new fare structure, the price for an adult Octopus card traveling between Hong Kong Station and the Airport or AsiaWorld-Expo Station will rise from HK$110 to HK$120. From Kowloon Station or Tsing Yi Station, the new fares will be HK$105 and HK$73, respectively.

Since its last fare adjustment in 2017, the Airport Express has seen a cumulative inflation of 13.8 percent, according to the Composite Consumer Price Index, with energy costs rising by 27 percent during the same period.

The rapid decline in passenger volume since the onset of the COVID-19 pandemic in 2020 has only recovered to about 70 percent of pre-pandemic levels. During this time, other modes of transport to and from the airport and related to tourism have also increased their charges. Additionally, changes in business travel patterns and competition from other public transport options have continuously challenged the financial sustainability of the Airport Express.

HK$2 billion to be invested in upgrading infrastructure

The document also highlights that over the next few years, more than HK$2 billion will be invested to upgrade various assets and enhance facilities of the Airport Express, which has been operational for about 27 years. This includes the construction of new platforms connecting to Passenger Terminal 2 at the airport, replacement of ticket gates, and new trains to improve the passenger experience.

Despite the fare increase, the MTR Corporation assures that promotional discounts will be offered, including maintaining group ticket prices for six months, free MTR interchanges, and ongoing promotions like free return trips on the same day to the airport.

Additionally, during the upcoming summer and Christmas holidays, children will ride for free, and there will be enhanced collaborations with airlines and travel agencies to offer various Airport Express travel products and bundled discounts. The fare for airport staff traveling between Hong Kong/Kowloon/Tsing Yi stations and the Airport/AsiaWorld-Expo station with an Octopus card will remain unchanged.

Airport Express due fare increase after 8-year gap

Lawmaker Chan Siu-hung, chairman of the transport panel in the Legislative Council, stated that Hong Kong Airport Express has been operational for 27 years, and it has been eight years since the last fare increase.

During the past eight years, a pandemic occurred, and passenger volumes have not yet recovered, while operational costs continue to rise. He believes these are the main reasons for proposing a fare increase.

However, he emphasized that after the fare increase, it is crucial to ensure and enhance service quality and safeguard passenger safety. Nonetheless, he expressed concerns about the potential decrease in passenger numbers as a reaction to the fare hike, which will require further assessment in the future.

Billy Mak Sui-choi, an associate professor at Baptist University, noted that based on the operational situation of the Airport Express and recent changes in the inflation rate, it is justifiable for the MTR Corporation to raise fares to cover basic expenses and increase revenue.

He argued that the fare increase does not concern everyday livelihood issues since the primary users of the Airport Express are travelers, whose main concerns are convenience, safety, and stability.

He believes the fare increase will not significantly impact travelers, and local residents, who are more familiar with the city's transportation system and pricing, can make informed choices accordingly.

(Prashan Limbu)