Airline tickets are expected to increase next month due to higher fuel surcharge to be imposed by airlines, according to the Civil Aeronautics Board.
CAB executive director Carmelo Arcilla said the fuel surcharge level from March 1 to 31 stood at level 7 as jet fuel averaged between P39 per liter and P42 per liter. Last month, the fuel surcharge level was only 6.
Level 7 of the new passenger fuel surcharge matrix allows airlines to collect a fuel surcharge of between P219 and P739 for domestic and between P722.71 and P5,373.69 for international flights.
Under Level 6 at present, airlines impose a fuel surcharge per passenger ranging from P185 and P665 for domestic flights and P610.37 to P4,538.40 for international flights.
For cargo, airlines are allowed to collect a fuel surcharge between P1.2 per kilogram and P3.29 per kg for domestic and P3.72 per kg to P27.62 per kg for international.
“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,” Arcilla said.
The CAB said airline fuel surcharge is an optional fee, imposed and collected by airlines to recover fuel costs and stem losses caused by upward spikes in fuel cost.
Jet fuel cost is the largest expense by an airline operator and as a global practice, airlines, “due to competition prefer to charge a fuel surcharge separately rather than increase fares when fuel prices surge,” CAB said.
The agency said infants without seats are exempt from the fuel surcharge.
The CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 because of low jet fuel prices then prevailing but decided to implement it again this year, as prices have surged.
