CAB indefinitely suspends passenger fuel surcharge


No passenger fuel surcharge will be imposed for bookings on domestic and international flights originating from the Philippines until further notice, the Civil Aeronautics Board (CAB) announced.

CAB executive director Carmelo Arcilla in an advisory dated August 20 said “the imposition of passenger fuel surcharge is no longer warranted” as the average price of jet fuels has been significantly reduced for the past months and already corresponds to Level 0.

According to CAB Resolution No. 44, if the two-month price average of jet fuel per liter falls below P21, no fuel surcharge will be collected.

CAB approved in 2018 the request of airlines to reimpose the collection of fuel surcharges for domestic and international flights following increases in the prices of fuel.

The imposition of fuel surcharge stopped in 2015 as fuel prices during that time had dropped.

Since May, CAB has not imposed a passenger fuel surcharge due to lower jet fuel price. Airlines have suspended their commercial flights since mid-March this year following travel restrictions to prevent the spread of the coronavirus disease, and only repatriation and cargo flights have been operational. A limited number of domestic flights have started operations this June following easing of restrictions.

Fuel surcharge is an optional fee imposed and collected by airlines to recover fuel costs and stem losses caused by an upward 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,” states Resolution No. 44.