The Civil Aeronautics Board (CAB) on Thursday says airfares are likely to drop further next month on lower fuel surcharge.
CAB executive director Carmelo Arcilla says the fuel surcharge from 1 to 31 June is seen at level 4 as jet fuel average between P30 to P33 per liter. In April, the fuel surcharge stood at Level 5.
Under Level 4, airlines impose a fuel surcharge per passenger of P117 up to P342 on domestic flights and P385.70 to P2,867.82 for international flights.
For cargo, airlines are allowed to collect a fuel surcharge between P0.60 per kilogram and P1.76 per kg for domestic and P1.98 to P14.74 per kg for international destinations.
“Airlines wishing to impose or collect fuel surcharge must file its application with the CAB on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” Arcilla said.
The CAB said the airline fuel surcharge is an optional fee collected by airlines to recover fuel costs and stem losses caused by upward spikes in fuel cost.
The fuel surcharge is not a part of the basic airfare and may be cut or removed altogether depending on the price of jet fuel in the market.
The CAB suspended the imposition of fuel surcharges in all domestic and international flights in 2015 on lower jet fuel prices but imposed it again this year as prices surged.
