Airline passengers are expected to pay higher fares next month after the Civil Aeronautics Board (CAB) approved an increase in the fuel surcharge amid rising jet fuel prices.
In an advisory, the CAB said the passenger and cargo fuel surcharge for both domestic and international flights will increase to Level 17 for the period November 1 to 15 from Level 16 for October 16 to 31.
Under Level 17, the fuel surcharge for domestic passenger flights will range from P559 to P1,635, depending on the distance. For international flights, the surcharge will range from P1,846.10 to P13,726.58.
For cargo shipments, airlines may charge a fuel surcharge of P2.87 to P8.40 per kilogram for domestic flights and P9.49 to P70.57 per kilogram for international flights under Level 17.
The CAB said it is implementing a 15-day price monitoring and implementation cycle for passenger and cargo fuel surcharges on both domestic and international flights. The interim measure replaces the standard one-month cycle and temporarily suspends specific provisions of CAB Resolution No. 25 (2022).
According to the CAB, the measure aims to mitigate the impact of surging fuel prices on passengers and airline operations.
The agency said the interim measure will remain in effect until the situation stabilizes or until it is revised or revoked.
“Airlines wishing to impose or collect fuel surcharge must file its application with CAB on or before the effectivity period, with fuel surcharge rates not exceeding the above-said level,” the CAB said.
The airline fuel surcharge is an optional fee imposed and collected by carriers to recover higher fuel costs and mitigate losses caused by sharp increases in fuel prices.
According to the International Air Transport Association’s (IATA) Jet Fuel Price Monitor, global jet fuel prices averaged $196.70 per barrel as of October 23, up 6.6 percent from the previous month and 1185 percent from a year earlier.