Airfares are expected to be cheaper by September following a lower fuel surcharge approved by the Civil Aeronautics Board (CAB).
In an advisory, CAB said the fuel surcharge for both passenger and cargo services will be at level 5 next month from level 6 in August for domestic and international flights.
At level 5, the fuel surcharge for domestic passengers ranges from P151 to P542 as compared to level 6, which ranges from P185 to P665 per passenger.
For international passenger flights originating from the Philippines, the fuel surcharge ranges from P498.03 to P3,703.11, compared to level 6 which ranges from P610.37 to P949.51.
International Air Transport Association data showed the average jet fuel price in the global market stood at $95.91 per barrel as of August 16, down from $100.75 per barrel on July 19.
Airline 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 cost. The fuel surcharge is not part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market by prevailing international practice.
In the first half of the year, the Philippines recorded a 26 percent increase in the number of air passengers to 29.6 million from 23.5 million in the same period last year, almost reaching the pre-pandemic level in 2019 with a total passenger volume of 30.5 million.
