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Airlines’ fuel surcharge to stay unchanged in August

The Civil Aeronautics Board said Tuesday the fuel surcharge imposed by airlines on passengers would remain unchanged next month mostly because of lower jet fuel prices.

CAB executive director Carmelo Arcilla said the fuel surcharge level for Aug. 1 to 31 would be at level 4 as jet fuel averaged between P30 and P33 per liter. The fuel surcharge for the month of July was at level 4.

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Under Level 4, airlines can impose a fuel surcharge per passenger between P117 and P342 for domestic flights and P385.70 to P2,867.82 for international flights.

For cargo, airlines are allowed to collect fuel surcharges between P0.60 per kilogram and P1.76 per kg for domestic and P1.98 per kg to P14.74 per kg for international.

“Airlines wishing to impose or collect fuel surcharge must file its application with CAB on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” Arcilla said.

The CAB said airline fuel surcharge is an optional fee, imposed and collected by airlines to recover fuel costs and stem losses caused by upward spikes in fuel cost.

It said fuel surcharge is not a part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market.

“We will continue to cushion the effects of fuel surcharge cost with our double-digit sale and other promos to ensure an affordable ticket price for our guests,” said AirAsia Philippines head for communications and public affairs Steve Dailisan.

“We would also encourage our guests to plan their travels ahead to prepare for the anticipated especially during ‘Ber’ months,” he said.

Cielo Villaluna, spokesperson of Philippine Airlines, said fuel prices have a direct correlation to total trip cost.

“The fuel surcharge level—pegged anew at level 4 and relatively lower than past periods—is a welcome development. In Philippine Airlines, we offer a variety of fares, enabling travelers to avail of lowered fares if they book early,” she said.

The CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 because of lower jet fuel prices but decided to implement it again this year, as prices surged.

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