Latvia Public Transport: Fare Hikes & Service Cuts Loom Due to Rising Costs

Latvia’s regional public transport network is facing a critical situation due to rising costs and a shortage of drivers, potentially leading to service interruptions across the country. Losses among regional public transport operators could reach 6.95 million euros this year, according to Ivo Ošenieks, president of the Latvian Passenger Transport Association (LPPA).

The LPPA has sent a letter to parliamentary party factions, calling for meetings with regional carriers to find solutions to the chronic underfunding of public transport. According to the association, costs have significantly increased since 2022 due to the economic impact of Russia’s war in Ukraine.

“Every kilometer driven now causes losses for companies. In reality, carriers are currently subsidizing passengers themselves — ensuring that students get to school, pensioners reach medical institutions, and workers arrive at their jobs,” Ošenieks warned.

The association cautioned that if companies go bankrupt, the state will be forced to urgently find new service providers, who will likely demand higher prices, while the bankrupt carriers’ debts will become direct state losses. Insufficient funding is also preventing carriers from hiring enough bus drivers, leading to canceled routes, a situation expected to worsen across all regions.

Fuel Costs and Fare Increases

Rising fuel prices are exacerbating the financial strain on public transport operators. In Jelgava, the local bus park may require an additional 200,000 euros due to fuel costs, according to reports. Nationwide, regional public transport fares increased on January 15th, 2026, as reported by the Road Transport Directorate (ATD).

Train fares rose by an average of 6.6%, while bus fares increased by approximately 7.5%. The cost of travel between zones increased by 30 cents for both trains and buses, with exceptions for trips within zone A. Fares on trains outside electrified zones and buses outside zones increased by 20 cents per stop.

For example, the price of a train ticket from Riga to Sigulda rose from 2.5 to 2.8 euros, while the Riga–Dubulti route increased from two to 2.3 euros. The ATD emphasized that all travel benefits for socially protected groups remain intact, and the procedure for using transport remains unchanged.

Proposed Solutions and Contract Indexation

The ATD has proposed indexing passenger transport contracts annually to address the financial challenges. The association of passenger carriers and the LPPA have positively assessed the ATD’s proposed amendments to contracts.

The ATD is also suggesting that 25 million euros are needed to address the issues. This comes as the industry grapples with the combined pressures of increased operating costs and a persistent driver shortage.