Passengers will benefit from cheaper airline tickets next month, following the Civil Aeronautics Board’s (CAB) approval of reduced fuel surcharges, due to lower jet fuel prices.
The CAB announced in an advisory that passenger and cargo fuel surcharges for domestic and international flights would be reduced to level 4 from April 1 to 30 from level 5 in March.
Under level 4, the fuel surcharge for domestic flights ranges from P117 to P342, depending on the distance, while for international flights, the fuel surcharge may range from P385.70 to P2,867.82.
The CAB said for the cargo fuel surcharge, airlines are allowed to charge P0.60 to P1.76 per kilogram for domestic flights under level 4 and P1.98 to P14.74 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.
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.
According to the International Air Transport Association’s (IATA) Jet Fuel price Monitor, the average jet fuel prices stood at $86.69per barrel as of March 14, 2025, down by 12.5 percent from the same period last year.
Industry players anticipate that lower fuel surcharges will stimulate both domestic and international travel.
In 2024, the domestic passenger traffic hit a record high of 32.1 million in 2024, while international passenger traffic reached 27.77 million.
Cebu Pacific remained the country’s leading domestic airline with 15 million passengers, followed by PAL Express (8.51 million), Philippine AirAsia (4.99 million), CebGo (2.26 million), and Philippine Airlines (633,060).
AirSwift Transport Inc. carried 430,996 passengers, Sunlight Express Airways (134,627), Royal Air Charter Service Inc. (38,845) and Island Aviation Corp. (12,057).
In terms of international passengers, PAL was the leading airline with 6.07 million passengers, followed by Cebu Pacific (5.66 million), Philippine AirAsia (1.33 million), Royal Air Charter Service (116,324) and PAL Express (9,529).