Franchised bus operator KMB says it is under pressure to raise fares to counter rising costs.
Company spokeswoman Susanne Ho said that despite rising oil prices and wage increases for bus drivers, the company was trying hard to control costs by restructuring and merging bus routes.
Ho said if the minimum wage is raised - the issue is the subject of public consultation until late May - then this will put even more pressure on the company, although it was too early to speculate what effect it would have on fares. KMB last raised its fares, by 3.6 per cent, in July. Bus drivers' salaries also rose by 4 per cent last year.
The company posted an operating loss of HK$17.8 million last year compared with a profit of HK$295.5 million in 2010.
Ho said KMB's plans to restructure bus routes had met 'less opposition' than in the past few years, and the proposals had been submitted to district councillors for discussion.
'Bus route restructuring will relieve some of the pressure to raise fares,' Ho said, adding that the company had not yet applied to the Transport Department to implement increases.