Airfares to Rise Anew in Philippines as Fuel Surcharge Hits Level 14

MANILA, Philippines — Airfares will be on the rise again in the second half of September after the Civil Aeronautics Board (CAB) raised the allowable fuel surcharge by another notch amid elevated jet fuel prices. On Friday, the regulator said in an advisory it has set the fuel surcharge at Level 14 for Sept. 16 to 30, up from Level 13 during the first half of the month. READ: Airfares face fresh hike as fuel surcharge rises Under Level 14, airlines may collect an additional P457 to P1,336 per passenger for domestic flights, depending on the distance, higher than the P423 to P1,237 range under the previous level. For international flights originating from the Philippines, the allowable surcharge will rise to between P1,509.08 and P11,220.71 from P1,396.74 to P10,385.42 under Level 13. CAB announced that they would apply the surcharge at a conversion rate of P62.25 per US dollar. The increase comes as renewed volatility in the Middle East keeps pressure on global oil markets, with Brent crude again climbing above $100 per barrel this week amid fresh hostilities affecting the Red Sea, a crucial shipping route. Jet fuel prices likewise jumped by 9 percent to $171.01 per barrel in the week ending Sept. 4 after easing to $156.85 per barrel a week earlier, according to data from the International Air Transport Association. Against this backdrop, the CAB is sticking with its shortened 15-day review cycle for jet fuel surcharges, which it began in March amid the Middle East war crisis to reduce the lag between actual fuel costs and applicable fuel surcharge. READ: Iran strikes ships, expands no-go zone outside Strait of Hormuz Before the conflict, airlines set the fuel surcharge at Level 4, allowing them to charge between P117 and P342 for domestic flights, and between P385.70 and P2,867.82 for international flights. Under CAB Resolution No. 25, Series of 2022, airlines cannot impose a fuel surcharge when the one-month average price of jet fuel drops below P21 per liter. /pai Source: Inquirer Business