THE Civil Aeronautics Board (CAB) will reduce the airline passenger fuel surcharge to Level 8 for the July 16-31 period from Level 9 in the primary half of the month, marking the sixth consecutive reduction under its revised 15-day review cycle.
In an advisory issued on Monday, the CAB said airlines may impose a fuel surcharge starting from P253 to P787 for domestic flights under Level 8.
For international flights originating from the Philippines, the allowable passenger fuel surcharge ranges from P835.05 to P6,208.98.
For airlines collecting fuel surcharges in foreign currency, the applicable exchange rate is P61.43 per US dollar, in accordance with the advisory signed by Executive Director Carmelo L. Arcilla.
Fuel surcharges are variable fees added to base fares to offset changes in jet fuel costs. The CAB adjusts the surcharge based on movements in jet fuel prices using the Mean of Platts Singapore (MOPS) benchmark.
Data from the Department of Energy (DoE) showed the Philippines’ average day by day fuel demand stood at 78.08 million liters as of July 10.
The DoE said average day by day jet fuel demand totaled 5.65 million liters, adding that available jet fuel supply is sufficient for 80 days.
Meanwhile, monitoring by the International Air Transport Association (IATA) showed jet fuel prices rose 2.1% week on week to $119.13 per barrel as of July 3. Nevertheless, prices remained 32.3% higher than a 12 months earlier.
The country’s listed airlines posted weaker earnings in the primary quarter.
Cebu Air, Inc., operator of Cebu Pacific, reported a net loss attributable to equity holders of the parent of P419.94 million, reversing the P465.90-million attributable net income recorded a 12 months earlier as operating expenses increased.
PAL Holdings, Inc. posted an attributable net income of P4.28 billion, down 1.15% from P4.33 billion in the identical period last 12 months.
In a June 7 report, IATA said the conflict within the Middle East and better fuel costs proceed to weigh on the airline industry’s outlook despite expectations of improving travel demand.
The airline trade group cut its 2026 global airline net profit forecast to $23 billion from an earlier projection of $41 billion.
“War-related disruptions within the Middle East and rising fuel costs have shifted the outlook for airlines to the more serious. Globally, airlines are expected to see profitability halve in comparison with 2025,” IATA Director General William M. Walsh said.
At the peak of the recent surge in jet fuel prices, the CAB raised the passenger fuel surcharge to Level 19 for the April 16-30 period, the best level since 2022 and one step below the utmost allowable rate. Jet fuel prices averaged $184.63 per barrel during that period.
Starting in April, the CAB shifted from a monthly review of passenger fuel surcharges to a 15-day review cycle to reply more quickly to fuel price movements following the conflict within the Middle East.
The CAB first reduced the passenger fuel surcharge to Level 18 for the May 1-15 period. — Ashley Erika O. Jose