Local airline operators are seeking regulatory approval to impose higher fuel surcharge this July, but assured affordable seat sale offerings will continue to sustain the travel demand.
The Civil Aeronautics Board (CAB) recently issued an advisory raising the fuel surcharge to be implemented on July 1 to 31 to level 11, from level 7 this June, for both passenger and cargo domestic and international flights, as jet fuel prices in the world market continue to rise.
At level 7, the fuel surcharge in June ranges from P219 to P739 for domestic flights and P722.71 to P5,373.69 per kilometer per way for international flights. At level 11, this goes up to P355 to P1,038 per passenger per km for domestic flights and P1,172.07 up to P8,714.84 per passenger per way for international flights.
Cebu Pacific Inc. (CEB) and AirAsia Philippines have filed their application to implement the higher fuel surcharge in July.
Xander Lao, CEB chief commercial officer, said CEB and other airlines are grappling with higher fuel costs which necessitate the implementation of the fuel surcharge.
“We are currently at Level 7 for the month of June and due to the unabated increase in world jet fuel prices, we have applied for Level 11 for the month of July,” Lao said.
“However, we continue to see strong demand for air travel and CEB will keep air travel affordable and accessible through our seat sale activities,” he added.
AirAsia Philippines said it applied for the implementation of the price matrix reflected in the level 11 fuel surcharge.
“AirAsia Philippines assures its guests that it shall maintain friendly and attainable prices in its base fares regardless of the volatility in fuel and market prices. Known for our brand of democratized travel, we will also continue rolling out best value deals not only for flights but also for accommodations through the airasia Super App,” said Steve Dailisan, AirAsia Philippines spokesperson and head of communications and public affairs.
For its part, Philippine Airlines said it is currently implementing the level 7 fuel surcharge this June, but it has yet to apply for the July fuel surcharge.
Meanwhile, the CAB issued Resolution No. 25 to include the imposition of fuel surcharge in cargo services in both domestic and international flights starting July this year.
CAB said it has initiated a review and evaluation of the current passenger fuel surcharge matrix in accordance with its policy.
The review showed the fuel surcharge was only applicable to the passenger service, one component in a combination service, when a cargo fuel surcharge matrix may be provided as the volatility of jet fuel prices also affects cargo operations as a component of combination services, wherein cargo is carried in the belly-hold capacity of a passenger aircraft.
CAB said the cargo fuel surcharge is applicable only for cargo carried in the cargo hold of an aircraft used for a combination of cargo and passenger services. Such cargo must be covered by an airway bill. It will be collected based on the actual weigh carrier per segment.
The fuel surcharge is an optional fee imposed and collected by airlines to recover fuel costs and to stem losses caused by upward spikes in fuel costs. It is not a part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market.
