The transport bureau noted that passenger journeys on franchised buses have yet to return to pre-pandemic levels. The industry saw an average of daily passenger journeys of more than 3.7 million in 2024 and 2025, lower than the average of about 3.92 million from 2010 to 2019.
“Such passenger figures reflects the competition faced by the franchised bus industry from other public transport modes, as well as the structural changes in the travelling pattern of passengers.”
The operating environment of the bus operators is also expected to remain challenging, owing to factors such as competition from other public transport modes, continuously rising operating costs and wages, as well as high oil prices due to disruptions to the fuel supply chain.
“It is necessary for (franchised bus operators) to further strengthen their financial positions and long-term financial sustainability so as to continue providing proper and efficient bus services,” the bureau said.
It added that the Hong Kong government “holistically take into account all factors” when considering the applications, including oil prices as part of the operating cost.
“Should the oil prices change in the future, the relevant factors will be fully considered in subsequent fare increase applications.”
FARE INCREASES WOULD PLACE “HEAVY FINANCIAL BURDEN”
Hong Kong politician Ben Chan Han-pan said the proposed increases were “exceptionally high” and called on the Executive Council to scrutinise the applications, SCMP reported.
He said that the fare increases would “undoubtedly place a heavy financial burden” on the public and disrupt their daily lives.
If the government did not reintroduce subsidies for the operators, it might be “difficult to suppress” the final approved fare increases, Chan said.
“This could force companies to cut service frequencies, impacting citizens’ daily commutes,” he said.
Michael Tien Puk-sun, an ex lawmaker, said the franchised buses fare adjustments should be linked to an annual transparent mechanism similar to the MTR’s fare adjustment formula, which is based on a basket of indicators such as inflation, wage changes and productivity factor, SCMP reported.
“This formula provides the best approach, avoiding the current process where the Executive Council reviews applications and triggers multi-year debates,” said Tien, who is also a former chairman of the Kowloon-Canton Railway Corporation.
Last January, Hong Kong’s Executive Council gave KMB the green light to raise fares by 4.3 per cent, and New Lantao Bus and Citybus by 6.5 per cent and 7.5 per cent, respectively.
Hong Kong’s Legislative Council’s transport panel will discuss the fare-increase proposals on Friday, SCMP reported.
After seeking the views of lawmakers and the Transport Advisory Committee, the government will then submit its recommendation to the Executive Council for final approval.