Airfares likely higher in Nov as CAB raises fuel surcharges

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  • Airfares are likely higher in November with Civil Aeronautics Board increasing passenger and cargo fuel surcharges for that month
  • New passenger and cargo fuel surcharge rates have been set at Level 7 from October’s Level 6, reflecting increased operational costs and rising average fares

Airfares may increase in November 2023 with the Civil Aeronautics Board (CAB) increasing the passenger and cargo fuel surcharge airlines may impose for the month.

In an advisory dated October 16 and signed by CAB executive director Carmelo Arcilla, the board upgraded the passenger and cargo fuel surcharge for November 1-30 to Level 7 from Level 6 in September and October.

The new fuel surcharge level has been put in place pending CAB’s ongoing review and evaluation of Resolution No. 25 and in view of the perceived rise in average fares in relation to higher operational costs.

Under Resolution No. 25, Level 7 rates for passengers range from ₱219 to ₱739 for one-way domestic flights and from ₱722.71 to ₱5,373.69 one-way international flights.

For cargoes, Level 6 rates range from ₱1.12 per kilogram (kg) to ₱3.29 per kg on a one-way domestic flight, and from ₱3.72 per kg to ₱27.62 per kg on a one-way international flight.

Airlines seeking to impose a fuel surcharge for November must obtain approval from CAB, with rates capped at Level 7. During this period, the conversion rate for surcharges in other currencies will be $1 to ₱56.77.

In May 2022, CAB introduced Resolution No. 25 to amend the fuel surcharge policy due to surging global jet fuel prices and currency fluctuations.

The update introduced a cargo fuel surcharge matrix to address the impact of volatile jet fuel prices on cargo transported in passenger aircraft belly-holds.