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Airfares may be lower in July as the Civil Aeronautics Board downgraded the level of passenger and cargo fuel surcharge that airlines may impose during the period
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CAB has set to Level 5 the passenger and fuel surcharge from July 1-31 from Level 6 since March 2024
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Level 5 rates for passengers range from P151 to P542 per one-way domestic flight and from P498.03 to P3,703.11 per one-way international flight
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For cargoes, Level 5 rates range from P0.77 per kilogram to P2.27 per kg on a one-way domestic flight, and from P2.56 per kg to P19.04 per kg on a one-way international flight
Airfares may be lower in July as the Civil Aeronautics Board (CAB) downgraded the level of passenger and cargo fuel surcharge that airlines may impose during the period.
In an advisory dated June 18 by signed by officer-in-charge Maria Elben Moro, CAB has set to Level 5 the passenger and fuel surcharge from July 1-31, lower than the Level 6 imposed since March 2024.
Under CAB Resolution No. 25, Level 5 rates for passengers range from P151 to P542 per one-way domestic flight and from P498.03 to P3,703.11 per one-way international flight.
For cargoes, Level 5 rates range from P0.77 per kilogram (kg) to P2.27 per kg on a one-way domestic flight, and from P2.56 per kg to P19.04 per kg on a one-way international flight.
Airlines seeking to impose a fuel surcharge for January must submit an application with CAB, with rates capped at Level 5. During this period, the conversion rate for surcharges in other currencies will be $1 to P58.07.
Resolution No. 25 provides CAB’s amended fuel surcharge policy, which introduced a cargo fuel surcharge matrix to address the impact of volatile jet fuel prices on cargo transported in passenger aircraft belly-holds.
According to the policy, fuel surcharges is to be evaluated monthly, with announcements made 15 days before implementation, replacing the previous two-month assessment cycle.
The surcharge rate is determined based on the one-month average of jet fuel prices (Mean of Platts Singapore) in pesos per liter equivalent, setting the maximum allowable rate. This change is designed to help airlines offset financial losses during periods of rising fuel costs.
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.”
If the one-month price average of jet fuel per liter falls below ₱21, no fuel surcharge will be collected. For both passengers and cargo, the surcharge should be applied uniformly for all passengers (except infants without seats) and segments.
In the case of cargo, it applies only to cargo carried in the aircraft’s cargo hold during combination services and must have an airway bill.
The surcharge is based on the actual weight and does not apply to passengers’ checked baggage.
For international flights originating from the Philippines, the fuel surcharge can be charged in any foreign currency of equivalent value.
READ: Airfares in June steady with no change in passenger, cargo fuel surcharge
