MÁV to raise fares from October 15
Wednesday, October 12, 2005, 16:53
Hungarian railway company MÁV said on Wednesday that a 6% rise in fares from October 15 was prompted by increasing energy costs. Higher fuel and energy prices have resulted in additional costs of Ft 1.78 bln (7.1 mln) for MÁV. But the fare increase will generate only Ft 620 mln (1.55 mln) in additional revenues, enough to cover just a third of the additional costs, the company reported in a statement. MÁV said that a 4.5% fare increase earlier in the year roughly matched inflation but did not make up for MÁV's increasing costs. MÁV noted that its fare rises remained 42% below the rate of inflation as measured from 1990, and it does not expect the latest fare increase to reduce the number of passengers. The company said it expects the fare increase to affect 1
million passengers, about 15% of which use MÁV trains to travel to and from the capital from outlying cities. About 70% of MÁV's passengers travel longer distances on standard trains, while 15% use InterCity trains.