Cheaper airfares expected in July as CAB lowers fuel surcharges

Attention, travelers! You can enjoy cheaper flights next month as the Civil Aeronautics Board (CAB) will implement lower fuel surcharges.

In an advisory, CAB set fuel surcharge from Level 6 to Level 5 from July 1 to 31.

That translates to a surcharge of P151 to P542, from P185 to P665, for domestic flights. International flights, meanwhile, will have a surcharge of P498 to P3,703, from P610 to P4,538.

"Airlines wishing to impose or collect fuel surcharge for the same period must file its application with this Office on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level," CAB said.

The agency also reminded carriers that the applicable conversion rate in collecting fuel surcharge for July is 1 USD = P58.07.

Fuel surcharge is a fee that airlines may include in the base fare to help offset the ever-fluctuating costs of jet fuel.

Budget carriers Cebu Pacific and AirAsia Philippines, keen on complying with the CAB order, are hopeful that Filipinos will book more flights, especially since it's the school break.

“This positive step makes air travel more affordable for our passengers and boosts demand as we enter the third quarter,” Cebu Pacific president and chief commercial officer Alexander Lao told The Philippine STAR.

AirAsia Philippines spokesman Steve Dailisan, meanwhile, assured travelers that they will maintain the lowest base fares among local airlines.