Domestic and international air fares are expected to increase in the first quarter of 2022 with the imposition of higher fuel surcharge by the air regulator.
In Civil Aeronautics Board (CAB) Resolution No. 46 signed by Carmelo Arcilla, CAB executive director, the passenger fuel surcharge for domestic and international flights will be elevated from level 2 to level 3, from January 1 up to Feb. 28, 2022.
This was based on the October to November 2021 jet fuel price which averaged at $94.29 per barrel with the US exchange rate of P50.65 for the same period.
This is equivalent to P29.98 per liter which corresponds to level 3 of the passenger fuel surcharge matrix.
Airlines must file an application with the CAB if they intend to impose fuel surcharge during the period.
“Airlines wishing to impose or collect fuel surcharge for the same period to file its application with CAB office on or before the effectivity period, with fuel surcharge rates not exceeding the above stated level,” the air regulator said.
Last July, CAB reimposed the fuel surcharge after almost a year of suspension. It was at level 1 for July to August and raised to level 2 for September and October as well as for November up to December this year.
The fuel surcharge matrix is published by the CAB every 12 months and is revised as necessary. Surcharges are suspended once the price of average jet fuel falls below P21 per liter.
Fuel surcharge helps airlines offset part of their operations cost in which fuel bills contribute the most.
Meanwhile, domestic and international operations of airlines remain limited due to the damage left by super typhoon Odette in airports in Visayas and Mindanao as well as the daily passenger cap imposed for international inbound passengers to control the spread of the coronavirus.
The government has imposed a 4,000 daily cap on inbound international passengers at Ninoy Aquino International Airport and 600 cap at Mactan-Cebu International Airport.
