Due to COVID-19 Impact, Seoul Bus Passengers Plummet 24%... Airport Buses Face 'Discontinuation Crisis'

Monthly Average Passenger Numbers: Airport Buses Down 85.4%, Village Buses Down 27%, City Buses Down 22.7%
City Buses Survive on Loans, Village and Airport Buses Struggle with Labor and Fuel Costs, Facing Closure Risk
Industry: "Bus Operators Must Be Included in Loss Compensation and Disaster Relief Support"

[Asia Economy Reporter Lim Cheol-young] It has been revealed that Seoul buses are also suffering from deteriorating management due to the prolonged COVID-19 pandemic.

According to Seoul City on the 10th, the total number of passengers on Seoul buses last year was 463.42 million, a 24.1% decrease compared to the previous year, and transportation revenue also dropped by 29.1% to 473.8 billion KRW. Despite the bus union’s own loans and the city’s emergency supplementary budget support, a significant number of routes are experiencing difficulties.

The airport bus situation was the most severe. Last year, the number of passengers was 2.12 million, a decrease of 12.42 million compared to the previous year, representing a decline of 85.4%. In May, the drop even reached 99.1%. Consequently, airport bus fare revenue fell from 157.1 billion KRW to 22.5 billion KRW, a decrease of 85.7%. Notably, passenger numbers had already started to decline by 40.8% in February, when the spread began in earnest, and from March to the end of the year, the monthly average decrease was 97.1%. To prevent bankruptcy for the time being, most routes have been suspended in consultation with the city.

The situation for village buses is similar. Last year, the number of users decreased by about 27% compared to the previous year. In March and December, when the spread of COVID-19 was particularly severe, passenger numbers dropped by around 40%. Village bus transportation revenue was 175.7 billion KRW, recording a 26.5% decrease to 63.5 billion KRW compared to the previous year. Among the top 10 routes with the highest passenger decrease rates, 8 routes all pass through major subway stations near universities, which is interpreted as being influenced by the increase in online classes due to COVID-19.

City buses are also not doing well. The total number of passengers on all 356 city bus routes last year decreased by 22.7% compared to the previous year, and similar to village buses, the decrease rates in March and December, when the COVID-19 spread was severe, were 33.7% and 36.1%, respectively. Annual transportation revenue recorded 275.8 billion KRW, a 22.4% decrease compared to the previous year.

[Image source=Yonhap News]

By type, the decrease rates were highest in the order of metropolitan buses at 25.3%, branch buses at 23.5%, and trunk buses at 21.9%. Circular buses passing through downtown business districts, Namsan, and tourist sites such as palaces decreased by 36.9% due to a sharp drop in tourists and people refraining from going out.

City buses, which receive city budget support under the quasi-public operation system, are enduring by covering financial shortfalls through a 600 billion KRW loan obtained from a bank offering the lowest interest rate through competitive bidding. Seoul City has prepared an emergency supplementary budget of 11 billion KRW to provide urgent financial support to the village bus industry, but for city buses, it is still difficult to prepare a supplementary budget, and the financial shortfall remains at 560.8 billion KRW.

Village buses, whose daily transportation revenue has sharply decreased, are struggling to cover basic operating costs such as labor and fuel expenses with transportation revenue alone, raising concerns about closures. Shin Hyun-jong, CEO of Geumchang Transport village bus operating in the Wolgye~Gongneung-dong area of Nowon-gu, where the passenger decrease was the largest, said, "We are facing an unprecedented situation due to COVID-19 and want to close down immediately, but it is not easy because of loans. With fares not having increased for years, the transportation industry has suffered greatly from COVID-19, so government-level support should be provided, and village buses, which serve as the lifeline for citizens in transportation-disadvantaged areas, should be included in this COVID-19 loss compensation."

Hwang Bo-yeon, Director of Urban Transportation at Seoul City, said, "The industry, autonomous districts, and Seoul City will continue to work together to minimize disruptions in Seoul bus operations through shared pain, and we will also strive to prepare more effective measures through the attention of the National Assembly and government. Just as there were no cases of COVID-19 infection on buses last year, we will make Seoul buses safe to use this year as well."

This content was produced with the assistance of AI translation services.