The cost of transporting passengers and cargo across domestic and international destinations is seen improving in September as airlines deal with a cut in surcharges.
The Civil Aeronautics Board (CAB) on Wednesday announced a reduction in surcharges on domestic and international flights, effective 1 September this year.
In an advisory, the CAB said both the passenger and cargo fuel surcharges on domestic and international flights are set to Level 5 in September, from Level 6 in August.
Under Level 5, the fuel surcharge on domestic flights ranges from P151 to P542, depending on the distance, while on international flights the fuel surcharge ranges from P498 to P775.
As for the cargo fuel surcharge, airlines are allowed to charge from P0.77 to P2.27 per kilogram on domestic flights under Level 5 and from P2.56 to P19.04 per kilogram on international flights.
“Airlines wishing to impose or collect fuel surcharge must file its application with CAB on or before the effective period, with fuel surcharge rates not exceeding the above-stated level,” the CAB said.
The CAB said the airline fuel surcharge is an optional fee allowing airlines to recover fuel costs and manage losses.
It is not a part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market.
According to the International Air Transport Association’s (IATA) jet fuel price monitor, jet fuel averaged $95.91 per barrel as at 16 August this year, down 5.6 percent percent from last month and lower by 14.6 percent compared to the same period last year.
