KMB fares to rise 4.9%

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KMB said the move was necessary to maintain its 400 routes
KMB said the move was necessary to maintain its 400 routes

HONG KONG The Hong Kong Government has announced fares on KMB services will increase by an average of 4.9% with effect from March 17. The operator said the rate will not be sufficient to offset the operating costs generated by wage costs, fuel prices and tolls.

KMB said: “As a company running labour-intensive operations with a rigid cost structure, the majority of KMB’s cost components surge as a result of fluctuations in the external economic environment. Sufficient resources are of prime importance if KMB is to maintain smooth operations on its 400 routes, which serve a total of 2.6m passenger journeys each day.”

KMB’s last fare rise application was made two and a half years ago. Fuel costs have since risen by more than 40% and labour costs by 9%.