Philippine Airfares to Rise in Late September as Fuel Surcharge Increases

Air travelers in the Philippines should prepare for higher airfares in the latter half of September, as the Civil Aeronautics Board (CAB) has upgraded the passenger fuel surcharge by one level. According to a CAB advisory, the fuel surcharge for the period of September 16 to 30 will be raised to Level 14 from Level 13 in the first half of the month. Under Level 14, passenger surcharges will range from P457 to P1,336 for domestic flights and from P1,509.08 to P11,220.71 for international flights. In comparison, under Level 13, passengers paid between P423 and P1,237 for domestic flights and between P1,396.71 and P10,385.42 for international flights. Fuel surcharges are optional fees, separate from the base fare, that airlines may pass on to passengers to recover costs from jet fuel price volatility. The CAB is implementing a shorter 15-day adjustment period for fuel surcharge levels, down from one month, as an interim measure amid high volatility in fuel prices. This aims to allow for faster responses to market changes, cushion the impact, and manage rising costs. The agency adjusts fuel surcharges based on jet fuel price movements. These are not part of the basic airfare and can be adjusted up or down depending on market jet fuel prices. Airlines wishing to impose or collect a fuel surcharge for the same period must file their application with the CAB on or before the effectivity period, with rates not exceeding the stated levels. The increase in fuel prices is also linked to global oil market trends. West Texas Intermediate, the key US oil benchmark, rose above $100 per barrel after Yemen’s Houthis captured the Red Sea port city of Mocha. Brent crude also rose over 6% past $107 a barrel, its highest level since May. This surge in crude oil prices will have a direct impact on domestic airfares in the Philippines. Source: GMA Money Philippines