Filipinos planning late-August trips could get a welcome break on airfare costs as the Civil Aeronautics Board cuts the fuel surcharge charged on domestic and international flights beginning Aug. 16.
CAB lowered the passenger fuel surcharge to Level 12 from Level 13 for flights covered from Aug. 16 through the end of August. Under the new level, airlines may add ₱389 to ₱1,137 on domestic trips and ₱1,284.40 to ₱9,550.13 on international flights, depending on distance.
That is lower than the Level 13 range of ₱423 to ₱1,237 for domestic flights and ₱1,396.74 to ₱10,385.42 for international routes. The reduction reaches as much as ₱100 on domestic travel and ₱835.29 on international flights.
Fuel surcharges are added on top of base fares to help airlines recover higher jet fuel costs. Carriers that want to collect the charge must apply with CAB. The agency also set the conversion rate at ₱61.30 per US dollar for airlines collecting in foreign currencies.
The adjustment follows a decline in global jet fuel prices. International Air Transport Association monitoring placed jet fuel at $146.93 per barrel as of Aug. 7, down 7.5 percent from $158.77 a week earlier. Prices remain elevated after the Middle East conflict drove fuel costs sharply higher earlier this year.
IATA flight and operations director Stuart Fox said airlines facing expensive fuel have “no choice but to try to pass higher fuel costs on to their customers,” while warning that tolerance for higher travel costs has limits.
CAB has been reviewing fuel surcharges every 15 days instead of monthly to respond faster to changes in jet fuel prices.
The reduction comes ahead of Undas and Christmas, giving travelers an opportunity to book flights under the lower surcharge level. Ticket prices, however, will still depend on airlines’ base fares because the CAB adjustment only reduces the allowable fuel surcharge.
