Embattled MTR can expect massive blow to revenue amid coronavirus outbreak with closure of Hong Kong cross-border services, analysts say

Amid coronavirus-related shutdowns, rail service is losing more than 9 million customers a month

Industry observers envision cross-border services shuttered for six months, though late-year bounceback possible

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The closure of cross-border service amid attempts to limit the spread of the deadly coronavirus is expected to deal a major blow to MTR revenue in the year ahead. Photo: Winson Wong

Published: 10:00am, 6 Feb 2020Updated: 6:03pm, 6 Feb 2020

With its profitable cross-border service now completely shuttered in a bid to limit the spread of the deadly coronavirus, Hong Kong’s MTR Corporation is looking at a grim financial year ahead, with an estimated revenue loss of over HK$3 billion (US$386 million), according to analysts.

The gloomy forecast comes as the embattled rail giant, already reeling from the suspension of its high-speed and through train services to the mainland, shut down its remaining cross-border service at the Lo Wu and Lok Ma Chau stations on the East Rail Line on Tuesday.

Based on December ridership, the MTR Corp is expected to lose at least 8.3 million passengers a month for its cross-border service and another 1.14 million a month for the high-speed train line.

According to the rail firm’s financial data, the fare per passenger is about HK$30 for the cross-border service and HK$90 for the high-speed rail.

Service was suspended at the Lo Wu and Lok Ma Chau stations of the East Rail Line on February 4, in a bid to limit the spread of the coronavirus. Photo: Edmond So

In other words, the complete shutdown of its cross-border service will cost the company at least HK$350 million in revenue a month.

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