Airline tickets are expected to rise in August following the Civil Aeronautics Board (CAB) decision allowing for a new fuel surcharge adjustment.
In an advisory, the CAB said passenger and cargo fuel surcharges for domestic and international flights will reset to Level 6 from 1 to 30 August, from Level 5 in July.
Under Level 6 of the surcharge matrix, 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 the cargo fuel surcharge allows airlines to charge P0.95 to P2.78 per kilo on domestic flights under Level 6 and P3.14 to P23.33 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,” 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.
According to the International Air Transport Association’s (IATA) Jet Fuel Price Monitor, the average jet fuel price stood three percent higher to $103.50 per barrel as of July 12 compared to last month but lower by 7.8 percent compared to the same period last year.
