Prices of airline tickets are expected to rise in August 2024 after the Civil Aeronautics Board (CAB) approved a fuel surcharge increase.
The CAB said in an advisory passenger and cargo fuel surcharges for domestic and international flights would increase to level 6 from Aug. 1 to Aug. 30 from level 5 in July.
Under level 6 of the passenger fuel surcharge matrix, airlines are allowed to collect a fuel surcharge of P185 to P665 for domestic flights and P610.37 to P4,538.40 for international flights.
The CAB said that for the cargo fuel surcharge, airlines are allowed to charge P0.95 to P2.78 per kilogram for domestic flights under level 6 and P3.14 to P23.33 per kg. for international flights.
“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,” the CAB 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.
According to the International Air Transport Association’s (IATA) Jet Fuel price Monitor, the average jet fuel prices reached $103.50 per barrel as of July 12 this year, up 3 percent from the previous month but lower by 7.8 percent from a year ago.
