By Ashley Erika O. Jose, Reporter
AIRFARES are more likely to increase after the Civil Aeronautics Board (CAB) raised the passenger fuel surcharge level for March.
In an advisory on Tuesday, CAB elevated the passenger fuel surcharge to Level 5 for March from Level 4 in February.
That is the primary time CAB has increased the passenger fuel surcharge within the last five months, because the surcharge had remained at Level 4 since October of last yr.
At Level 5, the fuel surcharge for domestic flights ranges from P151 to P542. For international flights, the surcharge is P498.03 to P3,703.11.
For airlines collecting the fuel surcharge in foreign currency, the applicable rate for the period is P58.46 to a dollar, CAB said.
Currently, at Level 4, the passenger fuel surcharge is between P117 and P342 for domestic flights and between P385.70 and P2,867.82 for international flights originating from the Philippines.
Cebu Pacific said that despite the rise in fuel surcharges for March, it is going to proceed to supply the best-value fares for its passengers.
“With summer travel approaching, we encourage our passengers to book early and reap the benefits of our lowest fares,” Cebu Pacific President and Chief Industrial Officer Alexander G. Lao said in a press release.
Steve F. Dailisan, head of communications and public affairs at AirAsia Philippines, said that the upper fuel surcharge would have a minimal impact on travel costs for its passengers.
“Despite the adjustments, AirAsia stays fully committed to fulfilling our brand promise of creating air travel secure, accessible, and hassle-free,” Mr. Dailisan said.
A fuel surcharge could also be collected by airlines based on the movement of jet fuel prices, using a benchmark often called MOPS (Mean of Platts Singapore).
The worldwide average jet fuel price rose by 0.5% week-on-week as of February 14, to $93.11 per barrel.
Yr-on-year, the worldwide average jet fuel price dropped by 3%, in accordance with fuel price monitoring reports by the International Air Transport Association.
Meanwhile, air passenger volume ballooned to 59.91 million in 2024, nearing its pre-pandemic peak as a consequence of booming domestic travel, in accordance with CAB.
Domestic passenger volume in 2024 grew to 32.13 million, marking a rise of 10.9% from the previous yr, while international passenger volume rose by 12% to 27.78 million, CAB Executive Director Carmelo L. Arcilla said in an e-mail to BusinessWorld.
Data from CAB’s website showed that in 2023, domestic passenger volume stood at 28.97 million, while international passenger volume was recorded at 24.81 million. In 2019, CAB logged a peak of 60.07 million total passenger traffic, mainly driven by international passenger traffic.
