AIRLINE passengers can expect higher fares in the first half of October after the Civil Aeronautics Board (CAB) raised the fuel surcharge amid rising jet fuel prices.
In an advisory on Monday, CAB said the passenger and cargo fuel surcharge for domestic and international flights will increase to Level 17 from Oct. 1 to 15, up from Level 14 in Sept. 16 to 30.
Under Level 17, passenger surcharges will range from P559 to P1,635 for domestic flights, and P1,846.10 to P13,726.58 for international flights, depending on the distance.
For cargo, airlines may impose surcharges ranging from P2.87 to P8.40 per kilogram on domestic flights, and P9.49 to P70.57/kg on international flights.
For surcharges collected in foreign currency, the applicable conversion rate will be P62.71 to the US dollar, up from P62.25 previously.
The CAB is using a 15-day cycle to monitor fuel prices and set passenger and cargo surcharges. The interim measure replaces the standard monthly cycle and temporarily suspends certain provisions of CAB Resolution 25.
The agency said the shorter cycle would help cushion the impact of surging fuel prices on passengers and airline operations. It will remain in effect until market conditions stabilize or the policy is revised or revoked.
Airlines wanting to collect the surcharge must apply with the CAB before the effectivity period, with rates capped at Level 17.
The fuel surcharge is an optional fee collected separately from the basic airfare to help carriers recover higher fuel expenses and limit losses during price spikes.
Surcharge levels for succeeding periods will be announced at least three days before they take effect.
According to the International Air Transport Association’s Jet Fuel Price Monitor, global jet fuel prices averaged $194.90 per barrel as of Sept. 18, up 24.2 percent from the previous month and 116.5 percent from a year earlier. TMT
