Monday, 21 April 2025, 1:24 pm

    CAB downgrades fuel surcharges for April as jet fuel prices decline

    The Civil Aeronautics Board (CAB) has announced a reduction in fuel surcharges for both passenger and cargo flights for April, citing a drop in jet fuel prices. Effective 1 through 30 April, the surcharge for domestic and international flights will be downgraded from Level 5 to Level 4.

    Under Level 4, the fuel surcharge for domestic flights will range from P117 to P342, depending on the distance. For international flights, the surcharge may range from P385.70 to P2,867.82. Meanwhile, cargo fuel surcharges will range from P0.60 to P1.76 per kilogram for domestic flights and P1.98 to P14.74 per kilogram for international flights.

    The CAB clarified that airlines wishing to impose or collect a fuel surcharge must file an application with the agency before implementing the fees, with rates not exceeding the prescribed levels. While fuel surcharges remain optional, airlines use them to recover fuel costs and offset the financial impact of fluctuating fuel prices.

    The move follows a notable dip in global jet fuel prices, with the International Air Transport Association (IATA) reporting that the average price for jet fuel stood at USD86.69 per barrel as of March 14, 2025. This represents a 12.5 percent decrease compared to the same period last year, easing the financial burden on airlines that rely on fuel surcharges to remain profitable amid volatile fuel costs.

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