Core Viewpoint - The article discusses the recent fare adjustment proposal for Chongqing's rail transit, marking the end of the "2 yuan era" after nearly 20 years, which has sparked public debate about rising subway fares and the financial sustainability of urban transit systems across China [3][4]. Summary by Sections Fare Adjustment Proposal - Chongqing's fare adjustment includes two options: shortening the initial travel distance or increasing the base fare, potentially raising the average monthly travel cost for citizens by over 24 yuan [3][5][6]. Financial Performance - In 2023, Chongqing's rail transit reported operating costs exceeding 111 billion yuan, with revenues of only around 30 billion yuan, relying heavily on government subsidies to break even [8][12]. - For 2024, projected revenues are 29.35 billion yuan against total operating costs of 72.73 billion yuan, resulting in a net profit of only 11 million yuan [8]. Operational Challenges - The rapid expansion of Chongqing's rail network has led to uneven passenger distribution, with significant disparities in daily ridership across different lines, impacting overall profitability [10][12]. - The construction costs for subways are high, ranging from 5 to over 10 billion yuan per kilometer, with labor costs being the largest expense, accounting for over 50% of total operating costs [13]. Broader Industry Context - Chongqing is not an isolated case; many cities face similar challenges in achieving profitability for their subway systems, with only 12 subway companies projected to exceed a net profit of 100 million yuan in 2024 [16]. - A significant number of cities rely on government subsidies for operational viability, with 28 cities receiving substantial financial support in 2024 [17][21]. - The government has set strict criteria for new subway projects, requiring cities to meet specific economic and demographic thresholds to avoid financial strain [21].