With the rising jet fuel prices, the Civil Aeronautics Board (CAB) has increased the passenger and cargo fuel surcharge for August that may result in higher airfares.
The higher fuel surcharge for August will not be reflected in airline tickets unless the airlines secured approval from the CAB. Airlines intending to impose fuel surcharge are asked to submit their application to the CAB on or before the effectivity date next month.
In the air regulator’s advisory signed by Maria Elben Moro, CAB officer-in-charge, the passenger and cargo fuel surcharge for domestic and international flights will be at level 12 from August 1 to 31, up from level 11 implemented this July.
CAB said the approved higher fuel surcharge was based on the average jet fuel price from June 10 to July 9, 2022, which stood at P54.73 per liter, corresponding to level 12 of the passenger and cargo fuel surcharge matrix.
With this, the fuel surcharge for domestic flights per passenger, per way will range from P389 to P1,137 for August, up from this month’s P355 to P1,038 per passenger, per way.
For international flights, the fuel surcharge will range from P1,284.40 to P9,550.13 per passenger, per way for August, as compared to July’s P1,172.07 to P8,714.84 per passenger, per way.
In addition, CAB said the cargo fuel surcharge in August will be from P2 to P5.85 per kilogram, one way for domestic, as compared to this month’s P1.82 to 5.34 per kg, one way.
For international cargo flights, the fuel surcharge next month will range from P6.60 to P49 per kg, one way, up from P6.03 to P44.80 per kg, one way in July.
Under CAB Resolution No. 25 (BM 04-05-23-2022) issued last month, government approvals shall be secured by the airlines prior to any imposition, collection or implementation of the fuel surcharge or change thereof and shall not exceed the prevailing rates as determined by the CAB.
However, airlines may opt not to impose any fuel surcharge, according to the CAB resolution.
CAB said the passenger fuel surcharge level in effect on the day of ticketing shall be applied and shall be the same for all passengers — adult, children and infants occupying seats.
The cargo fuel surcharge shall be applicable only for cargo carried in the cargo hold of an aircraft used for combination services. Such cargo must be covered by an airway bill.
Cargo fuel surcharge shall not be levied against a passenger’s check in baggage.
To date, level 12 is the highest fuel surcharge approved by CAB since its reimposition in July 2021.
The fuel surcharge is an optional fee imposed and collected by airlines to recover fuel costs and stem losses caused by upward spikes in fuel prices. It is not part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market.
