Airfares are expected to go down in the first half of June after the Civil Aeronautics Board (CAB) lowered the passenger and cargo fuel surcharge level amid declining global jet fuel prices.
In an advisory, CAB said the fuel surcharge for domestic and international flights will be reduced to Level 13 from June 1 to 15, down from Level 15 imposed from May 16 to 31.
Under Level 13, airlines may collect a passenger fuel surcharge of P423 to P1,237 for domestic flights, depending on distance.
For international flights, the allowable surcharge will range from P1,396.74 to P10,385.42.
For cargo, airlines may charge P2.17 to P6.36 per kilogram on domestic flights, and P7.18 to P53.39 per kilogram on international routes.
CAB said it is currently implementing a 15-day monitoring and adjustment cycle for passenger and cargo fuel surcharges on domestic and international flights. The temporary scheme replaces the usual one-month cycle and suspends certain provisions of CAB Resolution No. 25, series of 2022.
The agency said the interim measure is meant to help manage the impact of volatile fuel prices on passengers and airline operations.
The policy will remain in effect until fuel market conditions stabilize, or until it is revised or revoked by the board.
“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-stated level,” CAB said.
Fuel surcharge is an optional fee that airlines may collect to recover fuel costs and cushion losses caused by increases in aviation fuel prices.
Based on the International Air Transport Association’s Jet Fuel Price Monitor, global jet fuel prices averaged $159.85 per barrel as of May 22, down 15.1 percent from the previous month.