The city will lose riders and cash if it increases bus fares by another dime, a transit supporter and U of M graduate student warned.

Jeff Lowe said a study he's done shows Winnipeggers have reached the breaking point and won't tolerate another fare increase.

"You can't forever make more money simply by jacking up prices. Sometimes you can make more money by charging less," Lowe, a city planning student said yesterday.

Councillors are considering another 10 cent increase to adult fares —

But Lowe said the move will leave them in a worse spot and the city will actually lose cash.

He points to Transit figures which show ridership has steadily decreased since the mid '70s.

In 1991, there were 49 million rides, compared to 47 million in 1992.

And for the first time, the decline in riders translated into a loss in revenue of about $100,000.

Normally, a fare increase results in more cash -- even if ridership drops.

But Lowe said Winnipeggers have reached the breaking point.

"(The city) can't make any more revenue. When they put fares up, people respond accordingly."

Winnipeg Transit director Rick Borland said increased fares do have an effect on ridership, but there are other factors.

Thousands of jobs have been lost in Winnipeg during the past two years, meaning thousands fewer people are taking the bus to work, he said.

An older population also plays a role -- people between the ages of 25 and 50 tend not to take the bus.

As well, more people live in the suburbs and they tend to use their cars, Borland said.

"When you combine all those things, you get a downward spiral."

But Borland doesn't argue ridership will decline if council passes another fare increase.

In fact, he estimates Transit will lose one million riders.

But the increase will be enough to offset any loss in revenue and he predicts the city will make an extra $905,000 if the hike is passed.

Council votes on the proposal March 22.