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PAL seeks nod to collect fuel surcharge on all destinations

Philippine Airlines asked the approval of Civil Aeronautics Board for to collect fuel surcharge on all destinations to offset the costlier jet fuel prices. 

“We have filed a petition for a fuel surcharge, but it’s being acted by CAB. There will be some hearings. I hope that they can act on it as soon as possible,” PAL president and chief operating officer Jaime Bautista said.

He said PAL filed the petition to impose fuel surcharge as early as December 2017. 

A fuel surcharge is a temporary relief granted to airlines to help them recover losses incurred from higher jet fuel prices. Fuel accounts for about 50 percent of an airline’s operating cost per passenger, and is the second-highest expense next to labor.

Bautista said Hong Kong and the US allowed airlines to impose fuel surcharge. 

The CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 because of lower jet fuel prices. 

“We hope CAB considers our petition favorably,” Bautista said.

Carmelo Arcilla, executive director of CAB, said the agency would hold a hearing on Feb. 28 for the petition of PAL. “We are still evaluating PAL’s petition,” he said.

Data from the International Air Transportation Association showed that jet fuel prices averaged $78.1  a barrel as of Feb. 9, up by 17.8  percent from a year ago. IATA expects jet fuel prices to average $82.2  a barrel this year.

Meanwhile, Bautista said PAL was expecting the delivery of four Airbus 350s, six A321 Neo and five Q400s aircraft this year. 

“Based on the lease price [the 15 aircraft will cost] almost $2 billion,” Bautista said. 

Bautista said the first A350-900s would arrive in June, allowing PAL to deploy non-stop flights to the US east coast through the Polar region and to more European cities.  

Topics: Philippine Airlines
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