Airfares still high in May despite lower fuel fee
Pricey airfares are expected to persist through the first half of May after the Civil Aeronautics Board (CAB) set a Level 18 fuel surcharge for the period, which, while a notch lower than the peak rates imposed in late April, remains more than five times higher than pre-Middle East crisis levels.
This means travelers booking flights from May 1 to May 15 may pay an additional P593 to P1,734 for domestic flights and P1,958.44 to P14,561.87 for international flights, depending on the distance, in addition to base fares.
These new rates mark a slight step down from the Level 19 surcharge imposed from April 16 to April 30, when additional charges ranged from P627 to P1,834 for domestic flights and from P2,070.77 to P15,397.15 for international flights.
Continued uncertainty
Even so, the surcharge remains close to the maximum allowable Level 20, reflecting continued uncertainty in global fuel markets.
Earlier this week, Cebu Pacific CEO Mike Szucs said he expects fuel prices to ease only by the third quarter of 2026, although supply is not currently an issue for the airline.
Both Cebu Pacific and Philippine Airlines have said they have secured enough jet fuel supply through the end of June.
“Clearly, we’ve got a few months to go through where we’ve got to manage incredibly inflated fuel prices,” Szucs had said. “It’s our largest cost … and now, of course, it’s gone up by more than double.”
Still, both carriers have expressed caution over the second quarter, when the impact of fuel market volatility is expected to become more apparent.
Int’l jet fuel market
While still elevated, the slight easing in the fuel surcharge reflects a parallel decline in global jet fuel prices following a sharp spike earlier this month amid the still-unresolved conflict in the Middle East, now in its second month.
Jet fuel prices averaged $184.63 per barrel in the week ending April 17, down from a peak of $209 per barrel in the week ending April 3, based on data from the International Air Transport Association.
Despite the pullback, prices remain far above prewar levels, when jet fuel averaged below $100 per barrel.
While Iran, Israel and the United States are now observing a fragile truce, prospects for a longer-term resolution remain murky as Pakistan-mediated peace talks remain stalled.
Before the Middle East conflict broke out, airlines were operating under a Level 4 surcharge, with domestic fuel charges ranging from P117 to P342 and international surcharges between P385.70 and P2,867.82.
Under CAB Resolution No. 25, Series of 2022, fuel surcharges are optional and charged on top of the base airfare. These may be removed if the one-month average price of jet fuel falls below P21 per liter.
