Airfares are expected to stay low in August as the fuel surcharge remains unchanged.
In its latest advisory, the Civil Aeronautics Board (CAB) retained anew the passenger and cargo fuel surcharge for domestic and international flights in August at level 4, which is the lowest in over a year.
The fuel surcharge has been kept at level 4 since June and is the lowest for the past 15 months. In August last year, the fuel surcharge was pegged at level 12.
At level 4, the fuel surcharge ranges from P117 to P342 for domestic flights and P385.70 to P2,867.82 for international flights, depending on flight distance.
The CAB said airlines that will impose fuel surcharges next month must file their application on or before the effectivity period.
The fuel surcharge is an optional fee imposed and collected by airlines to recover fuel costs and stem losses caused by an upward spike in fuel prices. This is not part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market.
The cargo fuel surcharge will be applicable only for cargo carried in the cargo hold of an aircraft used for combination services.
Meanwhile, local carriers Philippine Airlines (PAL), Cebu Pacific (CEB) and AirAsia Philippines expect to sustain the strong travel demand in the third quarter.
“Fuel prices have a direct correlation to the total trip cost. The fuel surcharge level — pegged anew at level 4 and relatively lower than past periods — is a welcome development. In Philippine Airlines, we offer a variety of fares, enabling travelers to avail of lowered fares if they book early,” PAL said.
PAL expects passenger volume to reach 14.5 million this year compared to the 9.3 million passengers it carried last year.
Xander Lao, CEB president and chief commercial officer, said with the fuel surcharges staying put, this will sustain the momentum for high travel demand, yet keep fares affordable for passengers.
“We hope this encourages more people to proceed with their travel plans in the second half of the year,” Lao added.
Steve Dailisan, AirAsia Philippines head for Communications and Public Affairs, said the low-cost carrier will continue to cushion the effects of fuel surcharge cost with its double-digit sale and other promos to ensure affordable ticket prices for travelers.
AirAsia Philippines expects its load factor to increase in the second half of the year compared to the first semester, even surpassing its pre-pandemic 2019 figures.
