Air fares are likely to stay at the same level in May despite rising jet fuel prices in the world market.
This as the Civil Aeronautics Board (CAB) said in its latest advisory the approved fuel surcharge of level 4 for March and April 2022 will be maintained for May 1 to 31.
At level 4, airlines are allowed to impose P108 to P411 and P543 up to P5,189 per passenger per way for domestic and international flights, respectively.
“Pending the review and evaluation of the CAB passenger fuel surcharge for domestic and international flights pursuant to CAB Resolution No. 46, please be advised that the current level of the passenger fuel surcharge provided in CAB advisory dated February 15 shall be maintained,” the agency said.
CAB since 2018 has been implementing a fuel surcharge matrix which allows airlines to impose fuel surcharge on top of the base fare, depending on the movement of oil prices in the world market.
The approved fuel surcharge for both domestic and international flights from March 1 to April 30 is level 4. This was based on the average jet fuel price from December 2021 to January 2022 which stood at $95.34 per barrel, with the US dollar exchange rate at P50.75 for the same period.
This is equivalent to P30.43 per liter, corresponding to level 4 of the passenger fuel surcharge matrix.
The fuel surcharge matrix ranges from level 1 up to 7, allowing airlines to impose P45 up to P769 one way per passenger for domestic flights and P163 up to P9,860 per passenger per way for international flights.
CAB said airlines wishing to impose or collect fuel surcharge for the period must file an application on or before May 1. The fuel surcharge to be collected in equivalent currency for the same period is P50.75 to a dollar.
Meanwhile, Cebu Pacific Inc. (CEB) and AirAsia Philippines will file their application with the CAB to impose the fuel surcharge this May to mitigate the impact of rising fuel prices.
“CEB intends to file for fuel surcharge as approved by CAB. But it is more focused on driving passenger volumes, adding flights to key domestic and international hubs to recover. We are seeing strong recovery and has reached crucial milestone of operating average of 300 flights per day,” said Xander Lao, CEB chief commercial officer.
Steve Dailisan, AirAsia Philippines spokesperson, said the airline has secured approval to impose the fuel surcharge in March and April and will file anew for May.
“AirAsia will still apply fuel surcharge costs for the month of May to cushion the effect of rising fuel prices. We will continue to monitor the movement in pricing and will adhere to the prescribed fuel surcharge cost by the CAB,” Dailisan said.
However, flag carrier Philippine Airlines said it has no plan to apply for the imposition of fuel surcharge in May as its application for March and April was not granted.
With the easing of travel restrictions, local airlines are focused on restoring their domestic and international operations which had been severely affected by the pandemic since March 2020.
