Travelers should brace for higher airfares in August following the Civil Aeronautics Board’s (CAB) announcement Friday raising fuel surcharges to Level 4 for both domestic and international flights.
The new rates, effective from 1 to 31 August, mark an increase from Level 3 in July. Under Level 4, domestic flight fuel surcharges will range between P117 and P342, while international flights could see added costs of P385.70 to P2,867.82 per passenger, depending on distance. Cargo surcharges will also rise, with domestic rates ranging from P0.60 to P1.76 per kilogram, and international cargo fees reaching up to P14.74 per kilogram.
CAB emphasized that airlines must file an application to impose the surcharge but cannot exceed the set rate cap. The surcharge is optional but widely implemented as a buffer against volatile fuel prices.
The adjustment comes amid a 20.69 percent year-on-year increase in jet fuel prices, with international benchmark prices reaching US$92.51 per barrel as of 11 July 2025, according to the International Air Transport Association (IATA).
Earlier this year, Manila-based news outlets had reported a series of surcharge hikes tied to global oil trends, noting that the travel and tourism sector is under mounting pressure. Analysts warn that the latest increase could slow travel demand, especially for cost-sensitive leisure travelers, and may dampen the recovery momentum of the tourism industry post-pandemic.
Industry stakeholders are urging airlines to balance pricing strategies to avoid discouraging domestic travel and international arrivals, both key contributors to the country’s economic rebound.
