The Civil Aeronautics Board said Wednesday airfares are likely to increase next month on the back of higher fuel surcharge.
CAB executive-director Carmelo Arcilla said the fuel surcharge level for March 1 to 31 would be at level 7, as the cost of jet fuel averaged between P39 and P42 per liter. Last month, the fuel surcharge level was 6.
Level 7 of the new passenger fuel surcharge matrix allows airlines to collect a fuel surcharge of P219 to P739 for domestic flights and P722.71 to P5,373.69 for international flights.
Under Level 6, airlines can impose a fuel surcharge per passenger of P185 to P665 for domestic flights and P610.37 to P4,538.40 for international flights.
For cargo, airlines are allowed to collect fuel surcharges between P1.2 per kilogram and P3.29 per kg for domestic and P3.72 per kg to P27.62 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.
Sought for comment, PAL spokesperson Cielo Villaluna said the airline would adhere to the guidance from CAB on the higher fuel surcharge that takes effect next month.
“Our flight route network expansion continues. We are building our China network, gearing up for direct flights to Perth, Australia and increasing connectivity from Clark to Caticlan and Busuanga. We thank our customers for their continued support,” Villaluna said.
Steve Dailisan, spokesperson of AirAsia Philippines, said the increase in jet fuel prices may be driven by the demand brought about by the reopening of other key markets which could also be taken with sheer optimism in terms of global economic recovery post-pandemic.
“We are confident that the slight increase in fuel surcharge will have little or no significant effect on the booking behavior among our guests,” he 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.