Airfares to increase as higher fuel surcharge takes effect in August
Take note, travelers: Airfares are set to increase in the first half of August as the Civil Aeronautics Board raises the fuel surcharge to Level 13 amid continued tensions in the Middle East.
The higher fuel surcharge will take effect from Aug. 1 to 15, replacing the current Level 8 imposed from July 16 to 31.
Under Level 13, passengers on domestic flights will pay a fuel surcharge ranging from P423 to P1,237, while those on international flights will pay P1,396.74 to P10,385.42, depending on their destination.
Before the increase, the current Level 8 surcharge ranges from P253 to P787 for domestic flights and P835.05 to P6,208.98 for international flights.
In a statement, CAB advised airlines seeking to collect fuel surcharges during the period to file their applications before the implementation date and ensure rates do not exceed the approved level.
A fuel surcharge is an additional fee airlines may charge to cover higher jet fuel costs. CAB adjusts the surcharge based on prevailing jet fuel costs, meaning it can increase or decrease depending on market conditions.
Fuel surcharges previously reached as high as Level 19 from April 16 to 30 due to soaring jet fuel prices amid the Middle East conflict.
The agency continues to implement a 15-day fuel surcharge review and implementation cycle to better respond to fuel price volatility. This arrangement will remain in effect until fuel prices stabilize or CAB issues a new directive.
Oil firms announced that fuel prices would increase by as much as P6.80 per liter this week due to supply concerns caused by the continued closure of the Strait of Hormuz.
