Airfares seen steady in Dec with fuel surcharge unchanged

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  • Airfares are likely to be steady in December as the Civil Aeronautics Board kept unchanged the fuel surcharge level for that month
  • 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 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

Airfares are likely to be steady in December with the Civil Aeronautics Board (CAB) keeping unchanged the fuel surcharge level for that month.

In an advisory dated November 17, CAB set the passenger and fuel surcharge at Level 7 for the entire month of December, the same level as November.

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

For cargoes, Level 6 rates on a one-way domestic flight range from ₱1.12 per kilogram (kg) to ₱3.29 per kg 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 ₱56.67.

Resolution No. 25 outlines CAB’s amended fuel surcharge policy, introducing a cargo fuel surcharge matrix to address the impact of volatile jet fuel prices on cargo transported in passenger aircraft belly-holds.

The policy requires monthly evaluations of fuel surcharges, with announcements made 15 days before implementation, replacing the previous two-month assessment cycle.

The surcharge rate is determined based on the one-month average of jet fuel prices (Mean of Platts Singapore) in pesos per liter equivalent, setting the maximum allowable rate. This change aims to assist airlines in offsetting financial losses during periods of rising fuel costs.

Resolution No. 25 recognizes airlines can choose to charge a fuel surcharge as an optional fee to cover rising fuel expenses and prevent financial losses during fuel price spikes.

According to the resolution: “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.”

If the one-month price average of jet fuel per liter falls below ₱21, no fuel surcharge will be collected.

The surcharge should be applied uniformly for all passengers (except infants without seats) and segments for both passengers and cargo. In the case of cargo, it applies only to cargo carried in the aircraft’s cargo hold during combination services and must have an airway bill.

The surcharge is based on the actual weight and does not apply to passengers’ checked baggage.

For international flights originating from the Philippines, the fuel surcharge can be charged in any foreign currency of equivalent value. – Roumina Pablo