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Airfares, Cargo Rates Seen to Jump as Fuel Tax Hits Level 19

  • Arwen Gutierrez
  • Business & Finance
  • April 22, 2026

MANILA, Philippines — Travelers and cargo shippers are set to face higher costs after the Civil Aeronautics Board (CAB) raised the fuel surcharge to Level 19, effective immediately.

The increase, up from Level 8, was triggered by a 105.1 percent year-on-year surge in global jet fuel prices. It will remain in effect until April 30, 2026, as the government shifts to a 15-day monitoring cycle to respond more quickly to market volatility.

Under the new Level 19 bracket, passengers will see a significant impact on their total ticket price. For domestic travel, airlines may now collect between P627 and P1,834 per person depending on the distance, while international travelers face surcharges ranging from P2,070.77 to a staggering P15,395.15.

The cost of moving goods has also shifted, with domestic cargo rates set between P3.22 and P9.43 per kilogram, and international cargo climbing to as high as P79.15 per kilogram.

In a strategic move to handle the current “energy shock,” the CAB has temporarily sidelined the traditional one-month price review. By shifting to a 15-day implementation cycle, the agency aims to react more fluidly to market fluctuations. This interim measure temporarily suspends certain provisions of CAB Resolution No. 25, with the agency stating the policy will persist until the market stabilizes.

The catalyst for this drastic hike is the global surge in petroleum costs. According to the International Air Transport Association (IATA), the average price for jet fuel hit $184.63 per barrel as of April 17, 2026. This represents a doubling of prices compared to the previous year, leaving the CAB with little choice but to allow airlines to recover costs to avoid operational insolvency.

While the fuel surcharge is technically optional, most carriers are expected to file for the maximum allowed rates to cushion the impact of these record-breaking fuel spikes. Airlines wishing to impose these fees must file their applications with the CAB before the end of the current window to legally implement the revised rates.

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