The Civil Aeronautics Board said Thursday it downgraded the fuel surcharge level next month because of lower jet fuel prices.
CAB executive director Carmelo Arcilla said the fuel surcharge level for April 1 to 30 would be at Level 6 as the price of jet fuel averaged between P36 and P39 per liter.
The CAB imposed a fuel surcharge of Level 7 in March, with jet fuel averaging P39 and P42 a liter.
Under Level 6 of the new 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 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,” 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.
Sought for comment, AirAsia Philippines communications and public affairs head Steve Dailisan said: “Any form of reduction in ticket value will not only motivate people to travel but also spur economic activity in the destinations where we fly to.”
“Our commitment has never wavered in democratizing air travel despite the volatile pricing of fuel,” he said.
AirAsia Philippines is banking on its robust load factor and increasing confidence among guests to travel as reflected in its forward bookings.