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Airfares may be higher in August with the Civil Aeronautics Board increasing the level of fuel surcharge that airlines may impose on passengers and cargoes for the period
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CAB has set to Level 4 the fuel surcharge from August 1-31, higher than the Level 3 implemented this July
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Under CAB Resolution No. 25, Level 4 fuel surcharge for passengers ranges from P117 to P342 per passenger on a domestic flight, and P85.70 to P2,867.82 per passenger on an international flight
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For cargoes, Level 4 rates range from P0.60 per kilo to P1.76 per kg on a one-way domestic flight, and from P1.98 per kg to P14.74 per kg on a one-way international flight originating from the Philippines
Airfares may be higher in August with the Civil Aeronautics Board (CAB) increasing the level of fuel surcharge that airlines may impose on passengers and cargoes for the period.
CAB has set to Level 4 the fuel surcharge from August 1-31, higher than the Level 3 implemented this July, according to a CAB advisory dated July 15.
Under CAB Resolution No. 25, Level 4 fuel surcharge for passengers ranges from P117 to P342 per passenger on a domestic flight, and P85.70 to P2,867.82 per passenger on an international flight.
For cargoes, Level 4 rates range from P0.60 per kilogram to P1.76 per kg on a one-way domestic flight, and from P1.98 per kg to P14.74 per kg on a one-way international flight originating from the Philippines.
Airlines seeking to collect or impose fuel surcharge for August must submit an application with CAB on or before the effectivity period, with rates capped at Level 4. For fuel surcharge to be collected in equivalent currency, the applicable conversion rate for June will be P56.53 to $1.
Resolution No. 25 provides CAB’s revised 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 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 P21, 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.
The surcharge applies only to cargo carried in the aircraft’s 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 steady in July
