MTR fares to rise by 3.6 per cent in June

MTR passengers will face fare increases of 3.6 per cent in June - the fifth year in a row that the railway company has raised its fares despite making a HK$13 billion net profit last year.

The figure was calculated by finding the average increase between last year's rate of inflation - 4.3 per cent - and the wage rise in the transport sector - 4.1 per cent. A productivity factor of 0.6 is then deducted.

It is the second year this formula has been used. Last year, the increase was 2.7 per cent, down from 3.2 per cent under the old formula, which had a smaller productivity factor.

Any fare rise is capped at the rate of increase in the median monthly household, but that proved unnecessary as household income was up 6.16 per cent.

As part of the new pricing agreement, the MTR will also allocate HK$152.5 million for a 10 per cent discount on every second trip a passenger makes in one day.

This allows for the payment of a HK$27.5 million fine for 147 disruptions last year, and the HK$125 million that the company is required to share with passengers from its HK$8.6 billion "underlying" profits.

The MTR said the concessions would last three to four months.