Air fares to rise with Level 12 fuel surcharge in August

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Level 12 fuel surcharges
Airlines may collect under Level 12 fuel surcharges ranging from P389 to P1,137 per passenger for domestic flights; and from P1,284.40 to P9,550.13 for international flights. Photo by Bambi Corro on Unsplash
  • CAB has raised the passenger and cargo fuel surcharge for airlines to Level 12 starting August 1
  • Philippine Airlines and budget airline Air Asia Philippines have applied to collect the new surcharge while Cebu Pacific said it will first assess the situation
  • Under Level 12, fuel surcharges range from P389 to P1,137 per passenger of domestic flights; and from P1,284.40 to P9,550.13 for international flights

Air fares will continue to rise in August as the government has allowed airlines to recoup their higher fuel expenses amid rising oil prices by collecting a higher fuel surcharge from passengers and cargo shippers.

For next month, the Civil Aeronautics Board (CAB) raised the passenger and cargo fuel surcharge for domestic and international flights to Level 12 from Level 11 in July. So far, this is the highest surcharge rate that airlines may charge since CAB announced in July 2021 that it would reimpose a fuel surcharge following increases in jet fuel price.

CAB flagged a Level 7 fuel surcharge in June.

The CAB said airlines can impose a Level 12 fuel surcharge from August 1 to 31, as the price of jet fuel from June 10 to July 9 had averaged at P54.73 per liter.

“Airlines wishing to impose or collect fuel surcharge for the same period must file their application with this office on or before the effectivity period,” CAB Officer-in-Charge Maria Elben SL. Moro said in an advisory.

Philippine Airlines said it has already filed an application to collect the new surcharge rate. Air Asia Philippines said it had also done so.

AirAsia Philippines spokesperson Steve Dailisan told a local newspaper the airline had also applied to impose the higher fuel surcharge.

Cebu Pacific is expected to make a decision after assessing the situation, the budget carrier’s chief commercial officer, Xander Lao, was reported as saying.

Airlines may collect under Level 12 fuel surcharges ranging from P389 to P1,137 per passenger for domestic flights; and from P1,284.40 to P9,550.13 for international flights.

These are higher compared to Level 11, which sets fuel surcharge at P355 to P1,038 for domestic flights; and P1,172.07 to P8,714.84 for international flights.

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