Airfare relief ahead as fuel surcharge dips
Travelers flying within and out of the Philippines may see a slight reduction in ticket costs in the second half of October after the Civil Aeronautics Board (CAB) approved lower, although still elevated, fuel surcharges for the period.
In an advisory on Monday, the regulator said airlines would be allowed to impose a Level 16 fuel surcharge from Oct. 16 to Oct. 31, down one notch from Level 17 in the first half of the month, which marked a five-month high.
Under Level 16, the additional charges that airlines may collect to offset fuel price fluctuations will range from P525 to P1,535 per passenger for domestic flights and from P1,733.76 to P12,891.29 per passenger for international flights.
These are slightly lower than the rates under Level 17, which allowed airlines to collect between P559 and P1,635 per passenger for domestic flights and between P1,846.10 and P13,726.58 for international flights.
Still, the latest surcharge remains well above the preconflict Level 4, when airlines were allowed to collect only P117 to P342 for domestic flights and P385.70 to P2,867.82 for international routes.
The elevated charges come as the continuing conflict in the Middle East keeps global oil markets volatile.
According to the latest monitoring by the International Air Transport Association, jet fuel prices edged up to $187.34 per barrel in the week ending Oct. 2 from $185.43 per barrel the previous week.
Global oil prices eased slightly on Monday after US President Donald Trump said Ukraine and Russia had agreed to halt attacks on each other’s energy facilities. However, there remain concerns over Middle East supply disruptions following deadly Houthi strikes in Saudi Arabia.
The attacks on Saudi airports have also disrupted Philippine airline operations, forcing carriers to cancel flights to the kingdom, a major destination for overseas Filipino workers.
Because of the continuing volatility, the CAB has yet to restore the normal monthly review cycle for fuel surcharges, which it shortened to 15 days in March to “reduce the lag between actual fuel costs and applicable fuel surcharge.”
The CAB said the latest fuel surcharge rates would be implemented using an exchange rate of P62.65 to the US dollar.
Under CAB Resolution No. 25, Series of 2022, fuel surcharges are imposed on top of base fares and may be removed entirely only if the one-month average price of jet fuel falls below P21 per liter.
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