Lower PAL, Cebu Pacific airfares amid drop in world oil prices

Passengers of Philippine Airlines and Cebu Pacific Air will enjoy lower prices after the Civil Aeronautics Board (CAB) ordered the removal of fuel surcharge from airfares.

 

CAB issued a resolution prohibiting airlines to collect fuel surcharge as prices of petroleum products in the world market have declined, according to a GMA News' "24 Oras" report on Monday.

 

With the move, airfare for domestic flights is expected to be cheaper by P200 to P500, while airfare for international flights could become lower by as much as P15,000.

 

PAL said it will comply with the resolution.

 

Cebu Pacific, for its part, said it has removed the fuel surcharge since Jan. 9.

 

Airline companies started adding fuel surcharge to their fare in 2011 due to erratic fuel prices that time.

 

Oil prices headed for a seventh straight weekly loss on Friday, slipping back toward $50 a barrel on Friday as key producers show no sign of cutting output in the face of a supply glut, according to a report by Reuters. — Kathryn Mae Tubadeza/JST, GMA News