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CAB keeps passenger fuel surcharge rates unchanged
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The passenger fuel surcharge that airlines may charge in May 2022 will stay at Level 4 pending review of a resolution which sets guidelines for surcharges
The Civil Aeronautics Board (CAB) has maintained the passenger fuel surcharge that airlines may charge in May 2022 at Level 4 pending a review of guidelines on imposing surcharges.
Level 4 rates range from P108 to P411 per passenger on a domestic flight (one way) and from P543 to P5,026 per passenger on an international flight (one way) pursuant to CAB Resolution No. 46.
This is the highest surcharge rate that airlines may charge so far since CAB announced in July 2021 that it was reimposing the fuel surcharge following increases in jet fuel price.
In an advisory dated April 18, CAB executive director Carmelo Arcilla said airlines wishing to impose or collect the fuel surcharge on May 1-31 must file their application with CAB on or before the effectivity period, with the fuel surcharge rates not exceeding the stated level.
For fuel surcharge to be collected in the equivalent foreign currency, the applicable conversion rate for the period is P50.75 to US$1.
Arcilla said CAB is maintaining the Level 4 passenger fuel surcharge imposed in March to April pending review of CAB Resolution No. 46, which provides the guidelines and matrix on imposing passenger fuel surcharge for domestic and international flights.
Philippine Airlines earlier requested a higher fuel surcharge from CAB as rising fuel prices, exacerbated by the Russia-Ukraine war, affect the aviation industry.
Transportation Secretary Arthur Tugade, however, said he prefers the grant of a fuel subsidy to the aviation sector instead of approving higher fuel surcharges to avoid raising the cost of travel amid the continuing increase in global fuel prices.
The Air Carriers Association of the Philippines, attending a Lower House ad hoc committee meeting on March 7, said it supports the request for reducing or keeping government-imposed fees and charges at current levels to help mitigate the impact of rising fuel prices on their operations.
CAB Resolution 46 notes that the airline fuel surcharge is an optional fee that carriers may impose and collect to recover fuel costs and stem losses caused by a spike in fuel costs.
“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.
