Hakunila bus depot. Photo: Coen / Wikipedia Commons
- Next Article Finland to build four of 11 US icebreakers under $6.1bn deal
Helsinki Region Transport (HSL) is considering reducing or removing low-traffic bus routes as one way to avoid raising ticket prices in 2026, according to information obtained by Helsingin Sanomat.
The board met on Friday for a full-day seminar to review four fare options: no increase, or hikes of 3.1 percent, 4.8 percent, or the originally proposed 6.4 percent. The board will decide on the matter at the end of October.
The 6.4 percent rise would generate an estimated €15.5 million in additional revenue. However, HSL has acknowledged that higher fares could reduce passenger numbers and limit the actual income gained.
Half of the proposed increase is tied to a central government decision to raise VAT on public transport. The other half stems from rising general costs.
The fare increase plan has drawn strong opposition, particularly in Helsinki. Many politicians have called for a zero-increase solution. But resistance from other municipalities over increasing their financial contributions has pushed the board to examine cost-cutting measures.
Eight member municipalities, excluding Helsinki, have signalled reluctance to raise their share of public transport funding, citing strained local budgets. Municipalities currently cover an average of 57 percent of HSL’s operating costs using local tax funds.
To offer alternatives to fare hikes, HSL has drafted a €19 million cost-saving programme. The plan includes cancelling poorly used bus lines, postponing new services requested by passengers, and limiting service frequencies on selected routes.
HSL’s ability to cut services is restricted by long-term transport contracts. Terminating them early would incur financial penalties.
Other measures under review include lowering discounts for special groups. Cutting the current 40 percent discount for full-time students and those over 70 to 30 percent could increase revenue, but the proposal is considered politically sensitive.
A similar suggestion to end free travel for passengers with pushchairs and prams is also under discussion, though this has been rejected in previous years.
The board’s 14 members remain divided. Some support the full 6.4 percent hike, while others prefer more moderate options. Interviews conducted by Helsingin Sanomat suggest the final decision may be made through a vote, likely settling between 3.1 and 4.8 percent.
Municipal officials from Helsinki and Espoo have expressed concern about increasing their financial contributions, even though local politicians in both cities have promoted the zero-hike option.
Forecasts suggest that 390 million public transport journeys will be made in 2026, up from 380 million expected this year. However, roadworks and construction delays across the region are likely to reduce ridership and fare revenue.
HSL’s 2026 target is €419.7 million in total fare revenue, a figure that assumes the full 6.4 percent increase. The infrastructure compensation paid to municipalities will remain unchanged next year, as current agreements cannot be amended in time.
HT
- Next Article Finland to build four of 11 US icebreakers under $6.1bn deal
Source: www.helsinkitimes.fi
