Airfares to Rise Anew as Fuel Surcharge Climbs in Philippines

MANILA, Philippines — After getting a brief reprieve in July, travelers flying within and out of the Philippines must brace for pricier airfares again after the Civil Aeronautics Board (CAB) raised the jet fuel surcharge for the first half of August. In an advisory issued on Tuesday, the CAB said a Level 13 fuel surcharge would take effect from Aug. 1 to 15, ending a streak of six consecutive reductions and marking a sharp increase from Level 8, which was in effect from July 16 to July 31. The previous cycle’s fuel surcharge was also the lowest since the Iran conflict began. Under Level 13, airlines may collect fuel surcharges ranging from P423 to P1,237 for domestic flights, up from P253 to P787 under Level 8. For international flights, the surcharge will increase to between P1,396.74 and P10,385.42, from P835.05 to P6,208.98 previously. The CAB said the new rates would be implemented at an exchange rate of P61.65 to the US dollar. The increase comes as global jet fuel prices have climbed following the collapse of the preliminary peace agreement between the United States and Iran, which triggered renewed strikes and prolonged their conflict that began in late February. According to the International Air Transport Association’s jet fuel price monitor, jet fuel averaged $160.06 per barrel as of July 24, up 7.1 percent from $149.40 a week earlier. At the height of the conflict in April, prices briefly exceeded $200 per barrel. The latest increase also pushes fuel surcharges further away from the preconflict Level 4, when airlines were allowed to collect only P117 to P342 for domestic flights and P385.70 to P2,867.82 for international routes. The CAB has yet to restore the normal monthly review cycle for fuel surcharges, which it shortened to 15 days in March to “reduce the lag between actual fuel costs and applicable fuel surcharge.” Under CAB Resolution No. 25, Series of 2022, fuel surcharges are imposed on top of base fares and may be removed entirely only if the one-month average price of jet fuel falls below P21 per liter. INQ