Shares in listed bus operators that run services in London rallied as TFL agreed a last-ditch £1.6bn bail-out from the government last night.
Fares are set to rise with the four-year freeze brought in by Mayor Sadiq Khan to end with underground users facing the same 1% over inflation formula used on trains elsewhere.
Elderly Londoners will now have to pay for their bus and tube travel in peak hours.
The suspension of the Freedom Pass for the over-60s at peak times is said to be a temporary measure and also designed to keep the elderly off public transport during the rush hour to protect them from potential coronavirus infection.
TFL has seen passenger revenue slump by 95% because of the lockdown in London and yesterday Sadiq Khan threatened to axe buses and trains unless more money was forthcoming from the government.
Running services during the lockdown costs TFL £600mln per month.
The transport body will now receive a grant of £1.1bn and a loan of around £500mln.
Grant Shapps, Transport Secretary, said: “We are now in a situation where I am optimistic of having a solution with TfL and the mayor of London.”
TFL said it had been forced to agree the deal by the prospect of going bust without any additional money.