Air passengers face highest level of fuel surcharge in June

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Air passengers face highest level of fuel surcharge in June
Level 7 rates range from P201 to P769 one-way per passenger on a domestic flight, and from P1,035 to P9,892 one-way per passenger on an international flight. Image by friasfoto from Pixabay
  • Air passengers face highest level of fuel surcharge in June
  • Civil Aeronautics Board’s highest rate scale is Level 7
  • Level 7 rates range from P201 to P769 one-way per domestic flight passenger and from P1,035 to P9,892 one-way per international flight passenger

Air passengers will pay the highest level of fuel surcharge in June.

This is after the Civil Aeronautics Board said the applicable fuel surcharge from June 1 to 30 will be Level 7, the highest surcharge rate airlines may charge since CAB announced in July 2021 the reimposition of a fuel surcharge due to increases in jet fuel price.

In a May 25 advisory, CAB executive director Carmelo Arcilla said Level 7 rates range from P201 to P769 one-way per passenger on a domestic flight, and from P1,035 to P9,892 one-way per passenger on an international flight pursuant to CAB Resolution No. 46.

Airlines that want to collect the fuel surcharge from June 1 to 30 must file their application with CAB on or before the effectivity period, with fuel surcharge rates not exceeding the stated level. For the fuel surcharge to be collected in the equivalent currency, the applicable conversion rate for the period is P51.98 to US$1.

The new applicable rate is being imposed pending review of CAB Resolution 46, which provides guidelines and passenger fuel surcharge matrix for domestic and international flights.

CAB first announced it will be reviewing the resolution last April.

Resolution 46 notes the airline fuel surcharge is an optional fee carriers may impose and collect to recover fuel costs and stem losses caused by a spike in fuel cost.

“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, in accordance with prevailing international practice,” the resolution said.

Philippine Airlines earlier requested a higher fuel surcharge from CAB with rising fuel prices, exacerbated by the Russia-Ukraine war, affecting the aviation industry. But Transportation Secretary Arthur Tugade said he prefers a fuel subsidy to avoid raising the cost of travel.

The Air Carriers Association of the Philippines in a Lower House ad hoc committee meeting on March 7 said they support a request to reduce or at least not increase government-imposed fees and charges to mitigate the impact of rising fuel prices on operations.