TOKYO (Kyodo) -- East Japan Railway Co. said Friday it has applied to the transport ministry to raise its train fares by an average 7.1 percent beginning March 2026, its first blanket fare hike since the company's establishment in 1987.

The railway company, created following the breakup and privatization of the Japanese National Railways, seeks to hike fares for standard tickets and commuter passes, estimating the plan will boost its annual revenue by 88.1 billion yen ($585 million).

The starting fare will increase by 10 yen from the current 150 yen for distances between 1 to 3 kilometers on lines such as the busy Yamanote loop line in Tokyo.

"The business environment continues to be harsh as there has been a decline in the use of railways since COVID-19," Chiharu Watari, executive vice president of the company, said at a press conference.

If approved, it will be the first time JR East has raised prices in its entire service area, which includes Tokyo and its surrounding prefectures, barring the introduction of consumption tax and tax increases.

JR East is following in the footsteps of other railway companies running unprofitable lines in raising fares, as Japan's population is expected to continue to decline.

Hokkaido Railway Co. and Kyushu Railway Co. will raise ticket prices from April next year.

JR East plans to raise the price of standard tickets by an average 7.8 percent, commuter passes by 12.0 percent and school commuter passes by 4.9 percent.