Higher airfares coming in early November
Travelers booking flights within and out of the Philippines in early November may have to shell out more for tickets, as the allowable fuel surcharge is set to rise again amid global jet fuel prices nearing the $200-per-barrel mark.
In an advisory on Tuesday, the Civil Aeronautics Board (CAB) raised the allowable fuel surcharge to Level 17 for Nov. 1 to Nov. 15, up one notch from Level 16 during the second half of October.
This means travelers booking tickets during the period could face additional charges ranging from P559 to P1,635 for domestic flights and from P1,846.10 to P13,726.58 for international flights, depending on the destination.
These are higher than the rates under Level 16, when surcharges ranged from P525 to P1,535 for domestic flights and from P1,733.76 to P12,891.29 for international flights.
The increase also takes fuel surcharges further above their pre-Middle East war of 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.
Fuel surcharges are collected on top of base fares to help airlines offset fluctuations in fuel prices.
Level 17, which was also imposed during the first half of October, is the highest since Level 18 had been implemented in the first half of May.
Prolonged conflict
The latest adjustment comes as global jet fuel prices continued climbing in October, posting four consecutive weeks of increases amid persistent volatility in the oil market and ongoing hostilities in the Middle East.
Based on monitoring by the International Air Transport Association, jet fuel prices rose to $196.70 per barrel in the week ending Oct. 23, from $192.44 the previous week.
Prices have been on an upward trend since late September, when jet fuel averaged $185.43 per barrel. At the height of the conflict, prices had breached the $200-per-barrel mark.
With oil prices remaining volatile, CAB has yet to restore its regular monthly review of fuel surcharges, which it shortened to 15-day intervals in March to “reduce the lag between actual fuel costs and applicable fuel surcharge.”
The CAB said the latest surcharge rates would use a conversion rate of P63.01 to the US dollar.
