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Air travellers should expect airfares to drop in April as the Civil Aeronautics Board downgrades the passenger and cargo fuel surcharge to Level 6
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The surcharge downgrade means the surcharge on air tickets will range from P185 to P665 per one-way domestic flight, and P610.37 to P4,538.40 per one-way international flight
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For cargoes, Level 6 rates will range from P0.95 to P2.78 per kilogram on a one-way domestic flight, and from P3.14 to P23.33 per kg on a one-way international flight
Airfares may drop in April as the Civil Aeronautics Board’s (CAB) downgrades the passenger and cargo fuel surcharges.
In an advisory dated March 15, CAB executive director Carmelo Arcilla said the fuel surcharge for April 1-30 will be at Level 6 of the surcharge matrix under CAB Resolution No. 25 from Level 7 imposed for March.
RELATED READ: Higher fuel surcharge in March to bump up airfares
Under CAB Resolution No. 25, Level 6 rates for passengers range from P185 to P665 per one-way domestic flight, and P610.37 to P4,538.40 per one-way international flight.
For cargoes, Level 6 rates range from P0.95 to P2.78 per kilogram on a one-way domestic flight, and from P3.14 to P23.33 per kg on a one-way international flight.
Airlines wishing to impose or collect fuel surcharge for April must file their application with CAB on or before the effectivity period, with the surcharge rates not exceeding the prescribed level. For fuel surcharge that will be collected in the equivalent foreign currency, the applicable conversion rate for the period is P55.02 to $1.
CAB adopted CAB Resolution No. 25 in May 2022. The resolution provides the revised policy on fuel surcharges, which now includes a matrix for cargo. The fuel surcharge matrix ranges from Level 0 to 20.
Resolution No. 25 revises Resolution No. 46, which set the passenger fuel surcharge rates for domestic and international flights adopted in June 2021. Resolution No. 46 was reviewed and evaluated by CAB this year in light of the steady increase in jet fuel prices globally and the foreign exchange rate.
CAB said the review showed fuel surcharges were applicable only to passengers, who are one component in a combined passenger and cargo service.
Resolution No. 25 states that a cargo fuel surcharge matrix may be provided given that the volatility of jet fuel prices also affects cargo operations as a component of the combination service, as cargo is carried in the belly-hold of a passenger aircraft.
Under the policy, the applicable fuel surcharge will be determined based on a one-month average of jet fuel Mean of Platts Singapore prices in their peso per liter equivalent. The rate will be fixed for the immediately succeeding month and serve as the ceiling rate for the fuel surcharge.
The applicable fuel surcharge will be evaluated every month and announced 15 days before its effective date. Previously, the applicable fuel surcharge was determined based on a two-month average and implemented for two months.
Resolution No. 25 notes that airline fuel surcharge is an optional fee that airlines may impose and collect to recover fuel costs and stem losses caused by a spike in fuel prices.
“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.
If the one-month average price of jet fuel per liter falls below P21, no fuel surcharge will be collected.
The passenger fuel surcharge level in effect on the day of ticketing should be applied and be the same for all passengers, except infants without seats. The applicable surcharge should be collected per passenger and per segment.
For cargo, the fuel surcharge should be applicable only for fcargo carried in the cargo hold of an aircraft used for combination services. Such cargo must be covered by an airway bill.
Cargo fuel surcharge should be collected based on the actual weight (as opposed to chargeable weight) carried per segment. The surcharge should not be levied on a passenger’s check-in baggage.
For international flights originating in the Philippines, the fuel surcharge may be imposed in any equivalent foreign currency. – Roumina Pablo
