August Fuel Surcharge Unchanged --- CAB

The Civil Aeronautics Board (CAB) retained the passenger and cargo fuel surcharge at level 4 for the month of August, for the third month running, giving rise to expectations that air ticket prices will remain stable despite the surge in travel demand.

Photo Insert: Airlines wishing to collect the fuel surcharge from August 1 to 31, 2023 must file their application with the CAB on or before the effectivity period, according to the agency's advisory.

CAB executive director Carmelo Arcilla issued the advisory last week. So far, the board has imposed a Level 4 fuel surcharge for passengers and cargo since June, the lowest level in effect after CAB Resolution No. 25 issued in May 2022.

CAB Resolution No. 25 revised the policy on fuel surcharges for domestic and international flights adopted in 2021 to include a matrix for cargo The fuel surcharge matrix ranges from Level 0 to 20.

Under the Level 4 matrix of the CAB, passengers buying tickets next month will only be charged P117 to P342 for domestic flights.

On the other hand, international passengers originating from the Philippines will be charged P385.70 to P2,867.82 depending on the distance. Airlines wishing to collect the fuel surcharge from August 1 to 31, 2023 must file their application with the CAB on or before the effectivity period, according to the agency's advisory.

The CAB has been steadily bringing down the fuel surcharges from Level 6 in April and Level 7 in March with the decline in the price of jet fuel prices, which account for 50 percent of the airlines' costs.

However, airlines can collect fuel surcharge rates that are lower than the CAB matrix level, or they may not impose it at all, depending on how they want to compete with other carriers.

Travel demand is sensitive to pricing and any form of reduction in air fares can encourage more people to fly.

On the part of AirAsia Philippines, “We will continue to cushion the effects of fuel surcharge cost with our double-digit sale and other promos to ensure an affordable ticket price for our guests," stated Head for Communications and Public Affairs and Spokesperson Steve Dailisan.

"We would also encourage our guests to plan their travels ahead to prepare for the anticipated especially during “Ber” months,” he stressed. The last four months of the year, September to December is a peak season for travel.

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