OC Transpo already running $7M deficit in first three months of 2026
Report again blames lower ridership for revenue shortfall
Arthur White-Crummey · CBC News · Posted: May 22, 2026 7:55 PM EDT | Last Updated: May 22
https://www.cbc.ca/news/canada/ottawa/oc...-in-first-three-months-of-2026-9.7209705
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OC Transpo posts $7 million deficit in first 3 months of 2026 due to lower ridership
By Josh Pringle
Published: May 23, 2026 at 6:45AM EDT
https://www.ctvnews.ca/ottawa/article/oc...3-months-of-2026-due-to-lower-ridership/
OK, OC Transpo was rung up a deficit of only $7.2M in the first quarter of 2026. That is GREAT NEWS.
Last year, the full-year deficit was $52M! If the next three quarters have a deficit close to this past first quarter, then the full-year deficit for 2026 will be under $30M. That would be a huge improvement.
However, there are some things to consider:
- The cost of bus maintenance should go down. As more e-buses are deployed, fewer of the older buses will need to be duct-taped together by mechanics working overtime.
- The cost of diesel fuel should drop. In the 2014 budget (last data I could find on-line), it said that only 22% of OC Transpo’s diesel fuel was NOT hedged and therefore was subject to ‘market fluctuations’ (read that as ‘increases’). I assume that OC Transpo has kept roughly the same ratio, with about 4/5 of the diesel that it buys hedged. Ergo, OC Transpo should be mostly protected from the massive increase in diesel price. And, as more e-buses get deployed, it is the non-hedged fuel purchases that will be reduced.
- A big driver of OC Transpo’s deficit is the continued drop in ridership. With Federal Government workers returning to the office for more of the week-days, the farebox revenue should increase over the coming months.
Thus, it is likely that the 2026 deficit will actually grow by less than $7M per quarter.
I will note, however, that OC Transpo is currently saving money that had been budgeted to cover the cost of running the extended Line 1. Yes, it seems that running a train is apparently MORE EXPENSIVE than running all those buses. Once that LRT extension is open, OC Transpo’s costs will increase.
Of course, the biggest elephant in the budget is the $46M ‘placeholder’ for expected payments from upper levels of government. How that expectation got included in the budget is a mystery to me.