Commuters aboard Tranz Scenic's Capital Connection train service will face a fare increase from November 1.
KiwiRail General Manager of Passenger Services Deborah Hume said the service was currently operating at a loss, and it was hoped a fare increase would make the Capital Connection more financially viable.
This time last year, the service, which runs between Palmerston North and Wellington, averaged 708 passengers per day.
At present, about 630 passengers use the Capital Connection each day.
"It's difficult to attribute the drop in patronage from Palmerston North to any one thing,'' Dr Hume said, "but we have seen a drop in passenger numbers from Waikanae since February, following the extension of the Kapiti line.''
Dr Hume said she did not think a fare increase would deter people from using the Capital Connection, as it was in line with Greater Wellington Regional Council's five per cent fare increase for Tranz Metro and bus services, also taking effect on November 1.
Fare increases on the Capital Connection would range from 0 - 8.7 per cent, Dr Hume said, depending on station and ticket type, with an average increase of four per cent.
Single fares would face the highest price increases, she said, with monthly or new quarterly tickets - to be introduced next year - having a smaller price rise.
The cost of a monthly pass from Palmerston North, Levin or Otaki would increase by five per cent, with no price increase for monthly passes from Waikanae or Paraparaumu.
Despite a fall in patronage, Dr Hume said there was still demand for a premium commuter service to and from Wellington.
The Capital Connection service offers toilets, power-points for laptop computers, tables and a licensed cafe car.
"It costs a lot of money to run a service like this,'' Dr Hume said. "We want to retain it, but it needs to be commercially viable.''
