The Civil Aeronautics Board (CAB) has reduced passenger and cargo fuel surcharge level in January 2024 as consequence of cheaper jet fuel prices.
In an advisory, the CAB said passenger and cargo fuel surcharges for domestic and international flights will be at level 6 from January 1 to 31 next year.
Under Level 6, airlines are allowed to collect a fuel surcharge of P185 to P665 for domestic flights and P610.37 to P4,538.40 for international flights.
The CAB said for the cargo fuel surcharge, airlines are allowed to charge P0.95 to P2.78 per kilogram for domestic flights under Level 6 and P3.14 to P23.33 per kg. for international flights.
“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,” CAB 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.
It said fuel surcharge is not a part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market.
Data from the International Air Transport Association (IA)A show jet fuel prices reached $102.04 per barrel as of December 15, down 21 percent compared to November and 26.4 percent lower a year ago.
The CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 because of lower jet fuel prices.
