Airfares seen to rise as fuel surcharge level hiked for September

Air travelers should brace for costlier fares in the coming month as the Civil Aeronautics Board (CAB) raised the fuel surcharge level amid rising jet fuel prices.

In an advisory, the CAB said the passenger and cargo fuel surcharge for domestic and international flights was set at Level 6 for the September 1 to 30 period, up two notches from the current Level 4.

The current level has been unchanged for three months since June.

The upward fuel surcharge level adjustment next month also snapped the six-month downtrend which began in April.

Under Level 6, the fuel surcharge for domestic passenger flights ranges from P185 to P665 depending on the distance, while for international passenger flights originating from the Philippines, the fuel surcharge ranges from P610.37 to P4,538.40.

Under the current Level 4, passengers will be paying P117 to 342 in fuel surcharges for domestic flights, depending on flight distance.

For international flights, the surcharge ranges from P385.70 to P2,867.82.

Fuel surcharge is an optional fee, apart from the base fare, that airlines may pass on to passengers to recover costs incurred due to the volatility of jet fuel.

The CAB adjusts fuel surcharges in relation to the movement of jet fuel. For Level 6, the corresponding price of jet fuel ranges from P36 per liter to less than P39 per liter.

Data from the International Air Travel Association’s jet price monitor showed the global average of jet fuel was at $123.18 per barrel as of the week ending August 11, higher than the $112.39 per barrel as of the week ending July 28, 2023.

The CAB said airlines wishing to impose or collect fuel surcharge next month must file its application on or before the effectivity period.

“Despite the increase in fuel surcharge, Cebu Pacific remains committed to providing accessible and affordable air travel to our passengers through our seat sales. We encourage travelers to book their flights as early as possible to avail of low fares,” said Xander Lao, Cebu Pacific president and chief commercial officer.

“AirAsia Philippines will adhere to the Civil Aeronautics Board’s advisory on fuel surcharges. However, as a pioneer in low-cost air travel with a well-established domestic and international network, we will continue to strengthen our commitment to offering our guests the best value, as well as the safest and fastest way of connecting to their loved ones. We also invite our guests to avail of ongoing promos and book their flights early, especially for future travels,” said AirAsia Communications and Public Affairs head Steve Dailisan.

"We will adhere to the guidance from CAB and we thank our customers for their continued support for the flag carrier,” said Philippine Airlines spokesperson Cielo Villaluna.—AOL, GMA Integrated News