Home » Aviation » PAL seeks fuel surcharge on cargo shipments

Philippine Airlines (PAL) has filed a petition with the Civil Aeronautics Board (CAB) for the flag carrier to impose a fuel surcharge for its international and domestic cargo operations.

In its petition, PAL is proposing a fuel surcharge fee for domestic cargo in the range of P1.33 to P2.62 per kilogram, depending on the route. For international cargoes, the proposed surcharge ranges from US$0.17 to $0.27 per kilogram, depending on the distance. Charging will be based on actual weight and exempts minimum charge, the airline said.

PAL’s proposal follows CAB’s approval of local carriers’ request to reimpose fuel surcharge for passenger operations on domestic and international flights. This after the airlines filed separate petitions with CAB on imposing fuel surcharge for passenger and cargo operations to offset increasing costs due to the rising price of oil and the weaker peso.

In CAB Resolution No. 44, which provides the matrix for imposing passenger fuel surcharge, the aeronautics board said aviation fuel price in the world market in November 2017, based on Mean of Platts Singapore, reached $74.037 per barrel, or an increase of 14.015%. It said fuel price continues to escalate at a high of $85.16 per barrel as of April 2018, or a 25.24% increase from the April 2017 price of $66.66 per barrel.

PAL president Jaime Bautista earlier said the airline was spending more than $80 per barrel of fuel.

CAB executive director Carmelo Arcilla earlier said petitions for fuel surcharge were inevitable due to rising fuel prices and to the increase in excise tax on fuel as mandated under the Tax Reform for Acceleration and Inclusion Law.

PAL’s petition is scheduled to be heard by CAB on October 6.

Sister airlines Cebu Pacific and Cebgo have earlier filed their own petition for cargo fuel surcharge. – Roumina Pablo

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