The Civil Aeronautics Board (CAB) will raise passenger and cargo fuel surcharge levels next month ahead of the summer peak season and rising fuel prices.
In an advisory, the CAB said passenger and cargo fuel surcharges for domestic and international flights will be Level 6 from March 1 to 31, up from Level 5 in February.
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 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 stood at $114.59 per barrel as of February 9 this year, up 5.3 percent compared to last month and 2 percent t higher compared to the same period last year.