Air fares up by August as fuel surcharge soars

MANILA, Philippines — Air fares may see a significant jump by the first half of August, as airlines have been allowed to collect higher charges to cover the rise in jet fuel prices. In its latest advisory, the Civil Aeronautics Board (CAB) announced that the applicable passenger and cargo fuel surcharge for domestic and international flights from Aug. 1 to 15 would go up to Level 13 from Level 8 implemented from July 16 to 31. Under Level 13, airlines may charge a fuel surcharge of P423 to P1,237 for domestic flights and P1,396.74 to P10,385.42 for international flights, depending on the distance. The amount is significantly higher than the current Level 8 rates of P253 to P787 for domestic flights and P835.05 to P6,208.98 for international services. The CAB has suspended the usual 30-day coverage and is now adjusting fuel surcharge levels every 15 days to provide greater flexibility in responding to developments in the oil market. The interim measure will remain in effect until market conditions stabilize or until it is revised or revoked. Airlines planning to collect fuel surcharge for the first half of August must file their application with the CAB on or before the effective period. The surcharge must not exceed the rates prescribed under Level 13. For fuel surcharges collected in foreign currency, the CAB set the conversion rate at P61.45 to $1. — Bella Cariaso