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Airfares from April 1-15 may be higher following the Civil Aeronautics Board’s approval of higher fuel surcharges that airlines may impose as jet fuel prices have surged due to the Middle East conflict
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CAB approved a Level 8 passenger and cargo fuel surcharge for April 1-15, an increase from the Level 4 imposed for the past eight months
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Level 8 fuel surcharge for passengers range from P253 to P787 per passenger on a domestic flight, and P835.05 to P6,208.98 for international flight
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For cargoes, Level 8 rates range from P1.30 per kg to P3.80 per kg on a one-way domestic flight, and from P4.29 per kg to P31.92 per kg on a one-way international flight originating from the Philippines
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CAB also adopted a 15-day price monitoring and implementation cycle for fuel surcharge as an interim and temporary measure to mitigate the higher fuel price impact
Airfares from April 1-15 may be higher following the Civil Aeronautics Board’s (CAB) approval of higher fuel surcharges that airlines may impose during the period as jet fuel prices have surged due to the Middle East conflict.
CAB approved a Level 8 passenger and cargo fuel surcharge for April 1-15, an increase from the Level 4 that was imposed for the past eight months, including March.
READ: Airfares steady as CAB keeps fuel surcharge unchanged in March
Under CAB Resolution No. 25 (2022) or revised fuel surcharge policy, Level 8 fuel surcharge for passengers range, depending on distance, from P253 to P787 per passenger on a domestic flight, and P835.05 to P6,208.98 per passenger on an international flight.
For cargoes, Level 8 rates range, depending on distance, from P1.30 per kilogram (kg) to P3.80 per kg on a one-way domestic flight, and from P4.29 per kg to P31.92 per kg on a one-way international flight originating from the Philippines.
Airlines seeking to collect or impose fuel surcharge for April 1-15 must submit an application with CAB on or before the effectivity period, with rates capped at Level 8, CAB said in an advisory dated March 16.
For fuel surcharge to be collected in equivalent currency, the applicable conversion rate for the period will be $1 to P58.11, one peso lower than the P59.11 for March.
Aside from the higher fuel surcharge, CAB also adopted a 15-day price monitoring and implementation cycle for the imposition of passenger and cargo fuel surcharge for domestic and international flights instead of the one-month cycle under Resolution No. 25.
This is an interim and temporary measure to “mitigate the impact of the fuel price surge on air travel costs significantly affecting the riding the public and airline operations”, CAB said in its March 16 advisory.
“The shorter cycle of 15-days during this extraordinary period of high volatility in fuel prices shall allow faster response to market changes reducing the lag between actual fuel costs and applicable fuel surcharge,” CAB stated.
It added that this is intended to cushion the impact of fuel price volatility and manage increasing costs.
“The more gradual and incremental implementation of fuel surcharge to be collected from passengers can be a way of softening the impact of higher fuel surcharge increases, and enable faster reduction when fuel prices decline,” CAB explained.
The next and succeeding applicable levels will be announced at least three days prior to effectivity, and the evaluation period will transition to 15 days in accordance with the 15- day implementation period.
The interim measure will be in effect until the current situation stabilizes, or as may be revised or revoked accordingly.
Resolution No. 25 recognizes airlines can choose to charge a fuel surcharge as an optional fee to cover rising fuel expenses and prevent financial losses during fuel price spikes.
According to the resolution: “Fuel surcharge is not a part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market, in accordance with prevailing international practice.”
