Airfare to rise: Return of fuel surcharge approved

Travelers flying from destinations in the Philippines should brace for higher fares, as the Civil Aeronautics Board (CAB) has approved the reimposition of fuel surcharges, given the increase in global prices.

According to a resolution published in a local daily newspaper, the CAB has approved the fuel surcharges that were disallowed in 2015.

"Airline Fuel surcharge is an optional fee, imposed and collected by airlines to recover fuel costs and stem losses caused by an upward spike in fuel cost," the resolution read.

"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, in accordance with prevailing international practice," it elaborated.

In its resolution, the CAB noted that that aviation fuel prices have increased to $85.16 per barrel as of April 2018, up by 25.24 percent from the $63.66 per barrel in April 2017.

Under the resolution, passengers of one-way domestic flights may be charged from P34 to P769, while those traveling overseas may be charged an additional P163 to as much as P9,860, depending on the destination and the prevailing jet fuel costs.

"The applicable fuel surcharge will be determined based on the two-month average of jet fuel MOPS prices in its peso per liter equivalent, and will be fixed for two months," the CAB resolution read.

"If the two-month price average of jet fuel per liter falls below P21.00, no fuel surcharge will be collected," it added.

According to the resolution, the fuel surcharge will take effect immediately, and will be the same for all passengers — adults, children, and infants occupying seats.

The resolution noted, however, that infants without seats are exempt from the fuel surcharge.

GMA News Online has reached out to local carriers Philippine Airlines (PAL) and Cebu Pacific for comment on the matter, but no response has been received as of this posting.

PAL in February said it has appealed for the government to allow it to enforce a fuel surcharge given the increase in global prices. —Jon Viktor D. Cabuenas/JST, GMA News