Lower jet fuel prices in the global market allowed the Civil Aeronautics Board (CAB) on Wednesday to announce reduced fuel surcharges for domestic and international flights starting in October.
In an advisory, the CAB said passenger and cargo fuel surcharges on domestic and international flights reset to Level 4 in October from Level 5 in September.
Under Level 4, the fuel surcharge on domestic flights ranges from P117 and P342 depending on the distance while on international flights the fuel surcharge ranges from P385.70 and P2,867.82.
On the fuel surcharge for cargo, the CAB said airlines are allowed to levy P0.60 to P1.76 per kilogram on domestic flights under Level 4 and P1.98 to P14.74 per kg. 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 fuel surcharge is an optional fee imposed and collected by airlines to recover fuel costs and manage losses caused by upward spikes in fuel cost.
Fuel surcharges are not a part of the basic airfare and may be reduced or removed altogether 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 prices average $84.25 per barrel as of 13 September this year, down 10 percent percent compared to August and lower by 25 percent compared to the same period last year.
