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Tuesday, December 5, 2023

CAB keeps ‘level 7’ fuel surcharge for airline passengers in December

The Civil Aeronautics Board (CAB) maintained the passenger and cargo fuel surcharge at level 7 in December on lower jet fuel prices.

It said in an advisory passenger and cargo fuel surcharges for domestic and international flights would be at level 7 from Dec. 1 to Dec. 31.

Under level 7 of the passenger fuel surcharge matrix, airlines are allowed to collect a fuel surcharge of P219 to P739 for domestic flights and P722.71 to P5,373.69 for international flights.

The CAB said for the cargo fuel surcharge, airlines are allowed to charge P1.12 to P3.29 per kilogram for domestic flights under Level 7 and P3.72 to P27.62 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 agency 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.

Data from the International Air Transport Association showed that jet fuel prices reached $114.74 per barrel as of Nov. 10, down 5 percent from October and 17.2 percent from a year ago.

The CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 because of low jet fuel prices but re-imposed it when prices surged again.

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