Hotel developers, private equity firms, and general contractors told Reuters the financial stress on regional banks – the largest lenders to hotels and other commercial real estate markets – has forced developers to postpone projects or find other creative ways to raise capital.

The hotel industry’s predicament highlights the impact on the broader US economy of the regional banking crisis, which resulted in the failure of three midsized US lenders and prompted a flight in deposits to larger banks.

Following the collapse of Silicon Valley Bank in March, California developer Shopoff Realty Investments paused construction of Dream Las Vegas, a 21-story hotel and casino resort, and said the firm was trying to secure more financing.

Fifty-nine of the 98 total US hotel projects that have been paused this year were put on hold since March, when the banking crisis started, according to previously unreported data shared with Reuters by Build Central, a subscription-based research and analytics firm used by some large hotel brands to gauge market opportunities by location. A total of 324 projects broke ground or are in the pre-construction phase so far this year.

“The regional banks that used to be active for us 9 to 12 months ago are not showing up to finance hotels for us today,” said MCR Hotels chief investment officer Joseph Delli Santi, the third largest US owner-operator of hotel brands including Hilton.

Over the past year, access to loans and higher construction costs have delayed projects across Florida, Texas, and California, said James Hansen, executive vice president of business development of hotel developer and operator Hotel Equities, adding that the regional bank upheaval had extended wait times for construction loan approvals.

Chief executives of major hotel companies, Hilton Worldwide Holdings and Marriott International, have also alluded to the issue – warning of a reduction in hotel developments as credit becomes more expensive and less available, in their latest earnings calls.

Analysts say slower hotel development will also limit profits of blue-chip manufacturers like Caterpillar, whose commercial real estate customers account for around 75% of construction sales. Customers are scaling back on equipment purchases, deterred by high interest rates to finance or lease machinery.

In the weeks after the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank, many regional lenders began to consider reducing their exposure to commercial real estate by tightening lending standards and making fewer loans.

As lending criteria grew more stringent, smaller hoteliers without existing lending relationships began to hit roadblocks, said Andy Ingraham, a hotel developer and president of the National Association of Black Hotel Owners, Operators, and Developers.

Ingraham said he and other members are struggling to get financing for various projects.

In some cases, private equity firms have stepped in to fill in funding gaps for construction loans, but at steeper costs, said Evens Charles, chief executive of Frontier Development and Hospitality Group, a Washington DC developer whose portfolio includes 10 hotels.

“I’m hearing 9% to 10% (interest rates) and it’s coming from a 4% environment two and a half years ago,” he said.

‘Sit on the sidelines’

Small to midsized banks, including lenders with less than $250 billion in assets, hold roughly $2.3 trillion in commercial real estate loans for structures like offices, hotels, and warehouses, the equivalent of 80% of their total liabilities.

Overexposed regional banks are now offloading commercial real estate loans at a discount. Troubled regional lender PacWest Bancorp announced in May it would sell $2.6 billion worth of real estate construction loans.

Banks started to reduce their hotel loan portfolios in the first quarter of 2023, an analysis by S&P Global Market Intelligence found. Based on available data from regulatory filings, the study showed 14 of 24 banks that held more than $125 million in outstanding hotel and motel loans reported quarter-over-quarter decreases.

Western Alliance was the anomaly. The Arizona-based bank boosted its hotel loan holdings in the first quarter by 14% from the previous quarter. In an emailed statement, a spokesperson said the bank had executed a “deliberate slowdown” in lending to the hotel sector near the tail end of the first quarter with an “eye toward slower economic growth overall.”

Elevated interest rates and inflated raw material costs due to supply chain backlogs were already hurting hotel developers even before the regional banking crisis, said Mitchell Hochberg, president of Lightstone Group, a New York-based private real estate investor and developer with a $3-billion portfolio of hotel properties.

The firm is putting the brakes on new projects.

“It’s getting harder to pencil in a good hotel deal,” he said. “A lot of developers would prefer to sit on the sidelines until rates come down rather than be burdened with the excess costs.” – Rappler.com

Aviation, which produces around 2% of the world’s emissions, is considered one of the hardest sectors to decarbonize and the International Air Transport Association (IATA), grouping 300 airlines and representing about 80% of global traffic, said governments, planemakers, and regulators must all help.

“We are totally committed to achieving our net zero targets in 2050,” IATA director general Willie Walsh said at the end of a three-day summit in Istanbul.

“Everybody’s going to have to play their part,” Walsh told a news conference, listing players from governments to planemakers and airports who would have to “raise the bar to work with us to ensure that we can achieve what is an absolute critical goal.”

IATA’s annual meeting also brought stark evidence of a consumer recovery as many airlines voiced interest in ordering new jets to lock in scarce production slots and meet higher-than-expected demand with modern fleets.

Environmental groups say such rapid growth is at odds with the industry’s commitments on emissions, but suppliers say the most recent available jetliners provide the most efficient starting point to take advantage of alternative new fuels.

‘We’re serious’

Pressure is growing on aviation to limit carbon emissions amid low supplies of sustainable aviation fuel (SAF), currently accounting for only 0.1% of airline consumption.

Airlines are relying for 62% of their emissions reduction target on the fuel, which is currently between two to four times more expensive than kerosene.

But they oppose EU-style mandates and are calling for output incentives like those introduced by the United States.

“It’s hard to take IATA’s environmental targets seriously when they have a track record of criticizing…policies that will enable clean technologies like the EU’s SAF mandate,” Jo Dardenne of environmental group Transport and Environment said.

Tim Clark, president of Dubai’s Emirates, which recently announced a $200-million aviation sustainability fund, insisted the industry was taking commitments seriously.

“We’re serious, we’re putting money into it. We’re not technologists. We will operate our fleet as best, as efficiently as we can,” he told reporters.

But Clark, whose airline will host the next IATA meeting in Dubai next June, warned other carriers against complacency.

“We need to do something more than moan and groan and say ‘it’s not fair, we can only do what we are doing,'” Clark said.

Walsh said airlines were not afraid to confront the fact that their share of total emissions will rise as other industries with fewer technological hurdles decarbonize.

“It’s not about moaning. It’s about the reality…it is not good enough for everybody else to join us and say yes, we agree. They need to join us and say yes, we agree and here’s what we’re going to do.”

But Walsh hinted airlines needed more time to reach consensus on interim targets, after their emissions pledge in 2021 was clouded by disagreements seen as an echo of wider climate talks.

“Different parts of the world are moving at different paces and for us, representing global airlines, we’ve got to factor all of that into account.”

One thing airlines agreed on was frustration at aircraft delays, which have disrupted their schedules, with chief executives asking IATA to lobby planemakers.

In practice, a senior aircraft industry source told Reuters, airlines with the biggest order books and clout would be able to cut the best deals and shortest additional waiting times. – Rappler.com

The following explains the OPEC+ agreement reached on Sunday, June 4, and its effect on supply.

What was agreed for 2023?

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, already had in place oil output cuts of 3.66 million barrels per day (bpd), amounting to 3.6% of global demand.

The figure comprises a 2 million bpd cut agreed last year from August 2022 production levels, and a further 1.66 million bpd of voluntary cuts from nine OPEC+ countries.

OPEC+ did not increase the 2023 production cuts.

But on Sunday, Saudi Arabia pledged an additional voluntary oil output reduction of 1 million bpd for the month of July, which could be extended.

As a result, the country’s output will drop to 9 million bpd in July from around 10 million bpd in May.

What was agreed for 2024?

The OPEC+ alliance on Sunday chose to focus on a lower production target for 2024.

As well as extending the group’s existing supply cuts of 3.66 million bpd for another year, it agreed to reduce overall production targets from January 2024 by a further 1.4 million bpd versus current targets to a combined 40.46 million bpd.

Including additional voluntary production cuts, which the nine partaking countries extended to the end of 2024, this results in an even lower target of 38.81 million bpd.

In real terms, this is around 500,000 bpd lower than April 2023 production, when compared with International Energy Agency (IEA) figures.

As part of Sunday’s agreement, the United Arab Emirates received a higher production target.

Meanwhile, targets for Russia, Nigeria, and Angola were reduced to bring them in line with declining production levels.

What’s the short-term impact?

Analysts, including at OPEC and the IEA, already expected supply to tighten in the second half of 2023 with the current OPEC+ production policy in place.

As Saudi Arabia has a track record of fully delivering on its output commitments, analysts see the deal’s initial impact as lowering supply.

Rystad Energy said it expects the Saudi cut to deepen the market deficit to more than 3 million bpd in July, “which could add upside pressure in the coming weeks.”

“The oil balance will tighten due to the voluntary Saudi reduction, which was announced for July but could be extended if deemed necessary,” Tamas Varga of oil broker PVM said.

Saudi domestic crude use rises to as high as 1 million bpd in summer months when demand for air conditioning drives power consumption.

2024 supply

JP Morgan estimated the OPEC+ decision will reduce supply in 2024 by almost 1.1 million bpd compared to its previous expectations.

“Almost all of this reduction would come from the larger producers in the alliance, and very little would come from smaller members, as their production capacity will likely remain below their quotas,” the bank said in a report. – Rappler.com

European regulators have introduced a new mandate demanding airlines use sustainable aviation fuel (SAF), an alternative to jet fuel that produces fewer carbon emissions but is between two to four times more expensive than its traditional alternative.

New rules will require fuel suppliers to ensure they can make 2% of fuel available at EU airports SAF by 2025, rising to 6% in 2030, 20% in 2035, and gradually to 70% in 2050.

“I think it’s fair to portray the EU as being anti-aviation, whereas other parts of the world are very positive, pro-aviation,” International Air Transport Association (IATA) head Willie Walsh said on Monday at the group’s annual meeting.

Officials lambasted Europe for introducing a mandate, arguing that a global approach to increasing SAF production or tax incentives like those introduced by the United States under the Inflation Reduction Act would be more effective.

EU officials have said they are also helping to support the industry in its green transition through credits and other benefits and that the timelines for the mandates were reasonable.

In 2021, the body released its strategy to achieve net-zero carbon emissions by 2050, including a progressive increase in sustainable aviation fuel use.

During its annual meeting this week, IATA highlighted its roadmap to that goal, which will include a tool to track the amount of SAF airlines are purchasing and using in order to facilitate accountability across the sector.

Officials said that, while figures on SAF use by individual airlines won’t be publicly available, the tracking tool will help show the progress of the whole sector.

Walsh also called for a global system that would allow airlines to buy SAF for others to use, even if they don’t fuel up their own planes with it.

“Just as location makes no difference on the impact of CO2 emissions, it has no impact on where SAF is uplifted and used either. A global approach to book and claim for SAF credits will help facilitate economies of scale in SAF production,” he said.

Fragmentation

However, IATA said the EU’s approach could cause more fragmentation by forcing airlines to buy SAF in Europe, ultimately hampering a harmonized global approach and sowing confusion.

“Not only is [Europe] threatening to make the EU’s [emissions trading scheme] extraterritorial, but several European states also want to tax jet fuel – in defiance of the Chicago Convention and almost every bilateral air service agreement,” Walsh said.

Activists in Europe have also argued that solutions such as sustainable aviation fuel and more efficient engines will not be sufficient in helping the industry reach its targets, with many cheering a French ban on some short-haul routes as a step in the right direction.

“We’ve all lived through COVID, we all saw what happened when we lacked connectivity,” said IATA economist Marie Owen Thomsen, adding that she was “flabbergasted” by such a pessimistic pronouncement by environmental groups.

“If we agree that we need aviation, and we agree that we need to do this sustainably, then our focus should be on getting those solutions [like SAF and efficient engines] as fast as possible.” – Rappler.com

Saudi’s energy ministry said the country’s output would drop to 9 million barrels per day in July from around 10 million bpd in May, the biggest reduction in years.

“This is a Saudi lollipop,” Saudi Energy Minister Prince Abdulaziz bin Salman told a news conference. “We wanted to ice the cake. We always want to add suspense. We don’t want people to try to predict what we do…. This market needs stabilization.”

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world’s crude, meaning its policy decisions can have a major impact on oil prices.

A surprise decision to cut supply in April briefly sent international benchmark Brent crude around $9 higher, but prices have since retreated under pressure from concerns about the weakness of the global economy and its impact on demand.

On Friday, June 2, Brent ended trade for the week at $76.

Saudi Arabia is the only member of OPEC+ with sufficient spare capacity and storage to be able to easily reduce and increase output.

It was able to respond rapidly to excess supply that weakened the market in the early stages of the pandemic in 2020 when the group of producers implemented record output cuts.

Extension to end of 2024

OPEC+ has in place cuts of 3.66 million bpd, amounting to 3.6% of global demand, including 2 million bpd agreed last year and voluntary cuts of 1.66 million bpd agreed in April.

Those cuts were valid until the end of 2023 and on Sunday, June 4, OPEC+, in a broader deal on output policy agreed after seven hours of talks, said it would extend them until the end of 2024.

Since Russia’s invasion of Ukraine began in February last year, Western nations have accused OPEC of manipulating oil prices and undermining the global economy through high energy costs. The West has also accused OPEC of siding with Russia.

In response, OPEC insiders have said the West’s money-printing over the last decade has driven inflation and forced oil-producing nations to act to maintain the value of their main export.

Analysts said Sunday’s OPEC+ decision sent a clear signal the group was willing to support prices and attempt to thwart speculators.

“It is a clear signal to the market that OPEC+ is willing to put and defend a price floor,” Amrita Sen, co-founder of Energy Aspects think tank, said.

Veteran OPEC watcher and founder of Black Gold Investors Gary Ross said, “The Saudis have made good on their threats to speculators and they clearly want higher oil prices.”

As the market stayed closed on Sunday, UBS analyst Giovanni Staunovo predicted a strong start when it reopens on Monday, June 5.

In addition to extending the existing OPEC+ cuts of 3.66 million bpd, the group also agreed on Sunday to reduce overall production targets from January 2024 by a further 1.4 million bpd versus current targets to a combined 40.46 million bpd.

However, many of these reductions will not be real as the group lowered the targets for Russia, Nigeria, and Angola to bring them into line with actual current production levels.

By contrast, the United Arab Emirates was allowed to raise output targets by around 0.2 million bpd to 3.22 million bpd. – Rappler.com

OPEC+, which groups OPEC and allies led by Russia, pumps around 40% of the world’s crude, meaning its policy decisions can have a major impact on oil prices.

Three OPEC+ sources said cuts were being discussed among options for Sunday, June 4, when OPEC+ ministers gather at 2 pm in Vienna (1200 GMT). Before then, OPEC ministers will meet at 11 am on Saturday, June 3.

The sources said cuts could amount to 1 million bpd on top of existing cuts of 2 million bpd and voluntary cuts of 1.6 million bpd that was announced in a surprise move in April.

If approved, it would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand. Earlier, two OPEC+ sources said they did not expect the group to agree further cuts.

Western nations have accused OPEC of manipulating oil prices and undermining the global economy through high energy costs.

In return, OPEC officials and insiders have said the West’s money-printing over the last decade has driven inflation and forced oil-producing nations to act to maintain the value of their main export.

“We will never hesitate to take any decision to achieve more balance and stability [on] the global oil market,” Iraq’s Oil Minister Hayan Abdel-Ghani said on arriving in Vienna.

The surprise output announcement in April helped to drive oil prices about $9 per barrel higher to above $87, but they swiftly retreated, under pressure from concerns about global economic growth and demand. On Friday, international benchmark Brent was trading around $76.

Last week, Saudi Arabia’s Energy Minister Prince Abdulaziz said investors who were shorting the oil price should “watch out,” which many market watchers interpreted as a warning of additional supply cuts.

Russian Deputy Prime Minister Alexander Novak, however, subsequently said he did not expect any new steps from OPEC+ in Vienna, Russian media reported.

The International Energy Agency expects global oil demand to rise further in the second half of 2023, potentially boosting oil prices.

Analysts at JP Morgan, however, said OPEC had not acted quickly enough to adjust supply to high levels of US fuel output.

“Demand growth continues to be robust. Rather, there is simply too much supply…. The alliance waited too long to reduce supply. The alliance – or at least some members – would likely need to cut more,” analysts from JP Morgan said in a note.

Rapidan Energy Group analysts put the chances of a further cut at 40%.

“Ministers are determined to avoid a repeat of 2008, when a sudden collapse in global economic and financial stability sent crude prices from over $140 to $35 in six months,” they wrote. – Rappler.com

The suspension of the two affected trips – which run at 4:38 am and 7:56 pm – is estimated to disrupt the commutes of 467 passengers on each trip every day. But the Department of Transportation (DOTr) explained that the closure will speed up the construction of the North-South Commuter Railway (NSCR) by eight months and save up to P15 billion.

Starting next month, the existing tracks of the PNR will be fenced off to allow the NSCR’s elevated, double-track and electrified train system to be built directly on top of them. This will replace the current street level, single track, and diesel locomotive system of the PNR, according to DOTr Undersecretary for Railways Cesar Chavez.

The following stations along the route will be closed during the construction period: Alabang, Muntinlupa, San Pedro, Biñan, Sta. Rosa, Cabuyao, Mamatid, and Calamba.

Chavez first hinted at the closure during a House committee hearing on February 16. He also said then that the PNR Tutuban-Alabang route may also be suspended starting October 2023 to give way to the construction of the NSCR Manila-Alabang line.

The 147-kilometer NSCR was the biggest project under the Duterte administration’s “Build Build Build” program. It was originally set to commence full operations by 2023, but Chavez now estimated that it may take five more years to complete, with partial operations beginning in 2027.

Travel time from Clark Airport, Pampanga, to Calamba, Laguna, is expected to be cut to less than two hours from the usual 4 hours once the NSCR is completed. The NSCR is envisioned to integrate PNR Clark 1, PNR Clark 2, and PNR Calamba while also linking to the Light Rail Transit (LRT) lines 1 and 2, the Metro Rail Transit (MRT) line 3, and the planned Metro Manila Subway. – Rappler.com

“To be honest, in general, for the whole industry, we want sana (hopefully) at least 100,000 riders. Lahat na, sa buong inidustry na ‘yon. Kasi right now (That’s for the whole industry. Because right now), we have 45,000, and that’s not enough,” Jacinto told reporters during Move It’s app relaunching event on Tuesday, May 30.

“Ang importante makita natin ang dami ng demand versus supply na meron tayo. Kasi ‘pag tumaas pa ang demand at kulang ang supply, may problema na naman tayo pagdating sa transportation,” he added.

(It’s important for us to see the demand versus the supply that we have. Because if demand keeps growing and supply is not enough, then we’ll have another transportation problem.)

This lack of supply is among the reasons why the habal-habal or unaccredited motorcycles-for-hire remains widespread. For instance, Jacinto said that in the “outskirts of Cebu,” the habal-habal is the most popular mode of transportation.

“Ang habal-habal, hindi lang siya nangyayari sa Manila. Tayo ang pinaka-konti na naghahabal-habal. ‘Pag lumabas ka at pumunta ka ng ibang probinsya, doon, number 1 ang habal-habal,” he added.

(The habal-habal is not just here in Manila. We have the fewest cases of habal-habal here. When you go out to the provinces, that’s where you’ll see the habal-habal is the number 1 mode of transportation.)

Since 2019, only three motorcycle taxi providers have been allowed to operate under the Department of Transportation’s (DOTr) pilot study: Move It, Angkas, and JoyRide. Each transport network company is given 15,000 slots for its riders. Motorcycle taxis are also only allowed to operate in big cities, like cities in Metro Manila and Cebu.

Jacinto is hopeful that the additional slots could be opened up within the year – perhaps even within the next two months. Better yet, he said, the operation of motorcycle taxis should be formalized through a law, rather than just a pilot study.

This comes as Senator Grace Poe also backed the legalization of motorcycle taxis. 

“Four years and a global pandemic later, we believe it is now high time for Congress to use the data points from the ground to craft a policy that is responsive to the needs of the commuting public and all the stakeholders of the ever-growing motorcycle taxi industry,” the senator said, presiding over a hearing of the Senate committee on public services.

A survey by the technical working group also showed overwhelming support for legalization of motorcycle taxis, with 96% of their passengers wanting the government to allow motorcycle taxis.

Move It’s plans

For its part, Move It has set aggressive targets to capture its share of the market. Jacinto aims to grow Move It’s user base from around 100,000 to 1,000,000. He also wants to increase the company’s number of riders from the current 6,500 to the maximum allowable, 15,000. 

Jacinto is confident Move It can hit these targets, citing its edge in technology, which is the biggest struggle of most ride-hailing companies.

“Ang number 1 problem ng motorcycle taxi company, kung ano mang TNC ‘yan, technology. ‘Yung tech part, that’s the hardest thing. Ang hirap magdevelop. Imagine kung ilang transaction papasok sa ‘yo araw-araw. Pagmahina-hina ang technology mo, magkracrash ‘yan, maglalag,” he said.

(The number 1 problem of any motorcycle taxi company is technology. The tech part, that’s the hardest thing. It’s hard to develop. Imagine how many transactions come in every day. If your technology is weak, it will crash and lag.)

The overhaul of the app was a laborious process, taking eight to nine months and involving “many teams of developers.” But, Jacinto said, Move It now boasts of an uptime of 99.95%.

The revamped Move It app now allows in-app VOIP calling, cutting out the need for third-party communications apps. Users can also share their ride details to others using the “share-my-ride” feature. Move It also makes use of GrabMaps and Navigation, allowing for precise pinning for pick-up and drop-off locations.

What about fares?

This technology upgrade was enabled, in large part, by ride-hailing giant Grab’s controversial acquisition of the company. Although some lawmakers have flagged the move as a possible backdoor entry by Grab into the motorcycle taxi industry, Jacinto said that they have not encountered any further issues with the Philippine Competition Commission.

During a House hearing in late 2022, Marikina City 2nd District Representative Stella Quimbo warned that Grab’s buyout of Move It could allow the superapp to crowd out the small motorcycle taxi market over time. She also noted Grab’s “previous behavior” of charging higher fares after it acquired Uber and practically monopolized the market.

However, Grab’s head of mobility Samir Kumar emphasized that Move It and Grab were “completely independent” of each other.

“These are completely separate apps. Grab is a technology provider to Move It. So Move It is a standalone app,” Kumar said on Tuesday.

Jacinto also allayed fears that Move It could hike its fares in the future, pointing out that its fares must follow the fare matrix set by the DOTr’s pilot study.

“May sinusunod na fare matrix e. You cannot go beyond. Masususpend ka. Under the TWG, meron kasi nakaset na fare matrix doon,” Jacinto said. “Sa Move It, kami, mas binababa pa nga namin ng konti e. So hindi ko nakikita ‘yung lumalabas na dahil nakuha ni Grab, tataas ‘yung fares.”

(There’s a fare matrix that has to be followed. You cannot go beyond. You’ll be suspended. Under the technical working group, there’s a fare matrix set there. We at Move It actually charge a bit less than that. So I don’t see how Grab’s acquisition of Move It could lead to higher fares.) – Rappler.com

Here is a list of the latest flight cancellations. We will update this page as we receive more reports.

Philippine Airlines

May 27

• PR0438 Manila – Nagoya

May 29

• PR2932/2933 Manila – Basco – Manila
• PR2198/2199 Manila – Laoag – Manila
• PR2230/2231 Cebu – Baguio – Cebu

May 30

• PR2196/2197 Manila – Laoag – Manila
• PR2198/2199 Manila – Laoag – Manila
• PR2932/2933 Manila – Basco – Manila

May 31

• PR2932/2933 Manila – Basco – Manila
• PR2936/2937 Manila – Basco – Manila

Philippine Airlines (PAL) said in an advisory that the flights were cancelled in anticipation of the typhoon “and in the interest of safety.”

Passengers with cancelled flights under PAL may rebook their flights, convert their tickets to travel credits, or refund their tickets.

PAL encouraged passengers to check their flight status before proceeding to the airport.

Cebu Pacific

May 27

• DG 6881 Manila – Surigao

– Rappler.com

Users may scan the QR ticket – which is a QR code generated within the app – at the dedicated “fast lane” turnstiles. Each station has at least one or two turnstiles equipped with QR scanners. QR tickets may be used in any LRT1 trip from Baclaran to Roosevelt station.

 “Naka-live na po siya. Every day, may mga system upgrades po tayo kung kailangan. Stable po ‘yung system at operational na ito,” said Juan Alfonso, LRMC president and chief executive officer on Thursday, May 25.

(It’s already live. We can do system upgrades every day if needed. The system is stable and operational.)

Here are the steps to buy a single journey ticket through Maya:

1. In the Maya app, find the Services section.
2. Click on the LRT1 button under the Lifestyle category.
3. Enter your route (northbound or southbound), origin station, and destination station.
4. Click on Pay Now to generate your QR ticket.
5. Scan the QR ticket using the turnstile QR scanners at the station.

QR tickets are valid for 24 hours from the date of purchase. Maya also charges a P2 convenience fee for all ticket purchases.

Commuters can also buy LRT1 QR tickets using the Light Rail Manila Corporation’s (LRMC) ikotMNL app. Here are the steps:

1. In the ikotMNL app, click the beep QR ticket button.
2. Enter your route (northbound or southbound), origin station, and destination station.
3. Select the mode of payment and purchase the ticket.
4. Save or download the generated QR ticket.
5. Scan the QR ticket using the turnstile QR scanners at the station.

The QR ticketing system is expected to cut the long queues for tickets that build up in train stations during the morning and evening rush hours.

“When you look at rush hour, sinong pumipila (who’s usually in line)? It’s usually the single journey [ticket] users. Hopefully, this will help reduce the burden on them,” said Cynthia Hernandez, Public-Private Partnership Center executive director. “That’s why you do PPPs, para makinabang ‘yung riding public (so that the riding public can benefit) from the innovations that the private sector can implement.” 

LRMC clarified that beep cards and regular single journey tickets are still accepted in all turnstiles, including the fast lane turnstile. LRMC will also roll out an express lane – which starts at the entry and security inspection point – that will be exclusively for beep cardholders and QR ticket users.

FAST FACTS: Why the LRT1, LRT2, MRT are proposing fare hikes

LRT1 fare hikes?

Fare prices for the LRT1 may also soon be hiked. The Department of Transportation (DOTr) has already approved the adjusted fare prices, which would raise maximum fares for LRT1 single journey tickets from P30 to P35. But although the raise has been approved, the implementation of the fare hikes has been deferred indefinitely on orders from President Ferdinand Marcos Jr.

“We have no update on that information, but we’re closely coordinating with the DOTr if NEDA has questions. We’re ready to answer any questions,” Alfonso said.

“Basically, people do the PPP programs with an agreed contract with the government, and those entail those fare adjustments. That’s why you have fare adjustments with your toll roads, or your light rail, or any PPP type of partnership,” he added. 

In the meantime, the LRMC is focusing on completing its Cavite extension project, which hopes to cut travel time between Baclaran and Sucat to 10 minutes. Alfonso estimates that the first five stations of the Cavite extension line – Redemptionist station, MIA station, PITX/Asiaworld station, Ninoy Aquino Avenue station, and Dr. Santos station –  will be operational by September 2024. – Rappler.com