Air fares may not increase in the next two months as the approved fuel surcharge remains at the same level during the holiday season, according to the Civil Aeronautics Board (CAB).
In an advisory signed by Carmelo Arcilla, CAB executive director, the passenger fuel surcharge for both domestic and international flights in November and December this year remains at Level 2, same as for September and October.
Under the fuel surcharge matrix, the imposition of Level 2 was based on the price of jet fuel which averaged $80.22 per barrel last August and September, with the US exchange rate at P50.19 for the period.
This is equivalent to P25.32 per liter which corresponds to Level 2 of the passenger fuel surcharge matrix.
With this, CAB asked the airlines to file an application if they intend to impose fuel surcharges next month and in December.
“Airlines wishing to impose or collect fuel surcharge for the same period must file its application with this office on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” CAB said.
Last July, CAB reimposed the fuel surcharge after almost a year of suspension. This was at Level 1 last July and August, and was raised to Level 2 for September and October.
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.
Local carriers are optimistic of improved operations in the fourth quarter this year as the government eases travel restrictions.
As of October 13, domestic destinations that have relaxed their travel requirements and provided special consideration for fully vaccinated travelers include Butuan, Cagayan de Oro, Catarman, Coron, Culion in Palawan, Cebu, Dipolog, Guimaras, Iloilo, Maguindanao, Negros Oriental, Negros Occidental, Ozamiz, Puerto Princesa, Pagadian and Tacloban.
