Airfares are expected to drop next month mostly due to lower jet fuel prices, the Civil Aeronautics Board (CAB) said.
CAB executive director Carmelo Arcilla said the price of jet fuel is now averaging at P46.73 per liter, which corresponds to Level 9 of the passenger and cargo fuel surcharge matrix in September – lower than August’s Level 12.
Under Level 9 of the new passenger fuel surcharge matrix, airlines are allowed to collect fuel surcharges of P287 to P839 for domestic flights and P947.39 to P7,044.27 for international flights.
For the cargo fuel surcharge under Level 9 , airlines are allowed to charge P1.47 to P4.31 per kilogram for domestic flights and P4.87 to P36.21 per kg for international flights.
“Airlines wishing to impose or collect fuel surcharge must file their 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.
“We welcome this positive development and we will carry out the corresponding adjustments in our fuel surcharges. The new fuel surcharge rate will be applicable to tickets that will be purchased in September,” Cielo Villaluna, spokesperson of Philippine Airlines said.
Steve Dailisan, head of Communications and Public Affairs of AirAsia Philippine said the lower fuel surcharges will reflect on its ticket prices this September.
“This will benefit many of our guests who are now planning their travels in time for the Ber months,” he added.
The budget airline is offering an P88 promo sale from August 22 to 28 one way from Manila and Cebu hubs to any of its destinations.
AirAsia is expanding its flight services in Cebu with the launching of four new domestic routes in the Visayas and Mindanao, and two international destinations.
The new domestic routes include flights to and from Caticlan, Davao, Cagayan de Oro and Puerto Princesa, while the two added international destinations are flights to and from Seoul and Kuala Lumpur.
“We energized the business again. It’s worth a wait and I will never forget this date. We will be having more flights here in Cebu Airport both domestic and international, and we are ready,” said AirAsia chief executive officer Ricky Isla during the re-launching of their Cebu hub at the Mactan-Cebu International Airport on Tuesday.
“The reopening of Cebu hub signifies AirAsia’s commitment to improving connectivity and providing best options among guests not only for flights but also with our partner hotels, tour providers and merchants, all present in our digital, travel and lifestyle platform, AirAsia Super App,” he added.