Three years ago, a one-way ticket for the San Diego-Coronado Ferry cost $5. Starting Friday, it will cost $9.
The change comes after the California Public Utilities commission in February voted to allow the ferry’s operator to increase or decrease its fare by up to 15 percent, provided that both passengers and the CPUC are given 10 days notice.
Currently, a one-way ticket is $8, an amount approved by the CPUC last June. Flagship Cruises and Events, which operates the ferry, could have raised the fare to $9.20 under the new rule.
Flagship says the increases are necessary to maintain its 10 percent profit margin, which has deteriorated due to increased wages and gas prices.
The CPUC in 2021 approved a rate increase from $5 to $7 for one-way fare, and last year, it approved another rate hike of $1, marking a 60 percent increase over two years.
The new $9 rate marks an 80 percent increase over three years. It will now cost a family of four $72 round trip to travel by ferry.
When Flagship first applied for the ability to independently calibrate its prices, the company said it is quickly approaching a break-even point for operating costs, yielding no profit. In the past, the utilities commission has authorized rates that granted Flagship’s target 10 percent margin.
The CPUC last summer agreed to consider Flagship’s request, and at this year’s Feb. 15 voting meeting, decided to grant it. In doing so, the CPUC established a a zone of rate freedom (ZORF) for the ferry operator.
Last year, Flagship cited rising fuel and labor costs, as well as decreased ridership, as reasons dwindling profit. But some questioned whether rate hikes help or exacerbate the problem.
“I have to think the operating costs are roughly the same whether 10 or 50 passengers are on board,” said Mark Stephens, a San Diego resident, in electronically submitted public comment last summer. “What is happening is that costs for fuel, etc., may be growing, but fewer people are riding because of the cost increases, so revenues will never catch up.”
A bus ride from the San Diego side of the bay to Coronado costs $5 round trip per person, and riders under 18 are free, but it takes about 40 minutes, including a short walk. The ferry, by contrast, takes 15 minutes, and requires no transfers. Children under four are free. Driving takes around 15 minutes without traffic.
