Line 5 came into operation on October 7, 2007. It was the city's first north–south line, extending from in the south to in the north. On the same day, subway fares were reduced from between ¥3 and ¥7 per trip, depending on the line and number of transfers, to a single flat fare of ¥2 with unlimited transfers. The lower fare policy caused the Beijing Subway to run a deficit of ¥600 million in 2007, which was expected to widen to ¥1 billion in 2008. The Beijing municipal government covered these deficits to encourage mass transit use, and reduce traffic congestion and air pollution. On a total of 655 million rides delivered in 2007, the government's subsidy averaged ¥0.92 per ride.