AIR travelers can expect lower ticket prices in the second half of July after the Civil Aeronautics Board (CAB) reduced the fuel surcharge level for domestic and international flights due to the continued decline in global jet fuel prices.
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.
In an advisory, the CAB said passenger and cargo fuel surcharges will be lowered to Level 8 for the period July 16-31, from Level 9 which is in effect July 1-15.
Under Level 8, the fuel surcharge for domestic flights ranges from P253 and P787, depending on the distance, while those for international flights may cost between P835.05 and P6,208.98.
For cargo fuel surcharges, airlines are allowed to charge P1.30 to P3.80 per kilogram for domestic flights under Level 8, and P4.29 to P131.92 per kg for international flights, the CAB said.
The agency is also implementing a 15-day price monitoring and implementation cycle for passenger and cargo fuel surcharges on domestic and international flights. This interim measure replaces the standard one-month cycle, and temporarily suspends specific provisions of CAB Resolution No. 25 (2022).
The move aims to mitigate the impact of surging fuel prices on the riding public and airline operations.
The interim measure shall be in effect until the current situation stabilizes or as may be revised or revoked accordingly.
“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.
According to the International Air Transport Association’s (IATA) Jet Fuel Price Monitor, global jet fuel prices averaged $119.13 per barrel as of July 3, down by 7.8 percent from the previous month.
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