Higher flights fuel surcharge seen amid Middle East crisis

The public should brace for a dramatic increase in airfares as Transportation Secretary Giovanni Lopez on Saturday signaled an "inevitable adjustment" to flight fuel surcharges. 

At a news forum on Saturday, Lopez bared that the cost of jet fuel has more than doubled since the onset of the US-Israel versus Iran conflict.

“Dati, pre-war ang bili ng airlines companies ay $80 to $90 per barrel ngayon po pumapalo na sa $200 per barrel,” the Transportation chief said.

(Pre-war, the price of airline companies was $80 to $90 per barrel, now it's hitting $200 per barrel.)

With this, Lopez cited the wide gap between local fuel surcharge rates and the rest of the world. 

He said the Philippine maintained a Level 4 fuel surcharge for the entirety of March, while other regions have seen surcharges spike to Level 13 or 14.

“Ngayon po, ang alam ko nang level ng surcharge is Level 20 sa iba part ng mundo,” he added.

(Now I know the surcharge level is Level 20 in other parts of the world.)

For the April 1 to 15 period, the Civil Aeronautics Board (CAB) raised the fuel surcharge level for domestic and international flights to Level 8 from Level 4.

Fuel surcharge is an optional fee, apart from the base fare, that airlines may pass on to passengers to recover costs incurred due to the volatility of jet fuel.

The CAB adjusts fuel surcharges in relation to the price movement of jet fuel.

Under Level 8, passengers will be paying P253 to P787 in fuel surcharges for domestic flights, depending on the flight distance.

For international flights, the surcharge ranges from P835.06 to P6,208.98.

Under the previous Level 4, the passenger fuel surcharge ranges between P117 and P342 for domestic flights, depending on the distance, while for international flights originating from the Philippines, the surcharge ranges from P385.70 to P2,867.82.

“Kinausap na po natin ang CAB to make the necessary adjustments if needed but definitely sana wag Level 20 kahit na ‘yun na ang karapat-dapat,” Lopez said.

(We have already spoken to the CAB to make the necessary adjustments if needed but definitely hope it doesn't go to Level 20 even though that's what is appropriate.)

Level 20 is the highest tier under the CAB’s fuel surcharge matrix system.

Under Level 20, the passenger fuel surcharge ranges between P661 to P1,993 for domestic flights; while for international flights it stands at P2,183.11 to P16,232.44.

READ: How much are the passenger fuel surcharges in CAB’s matrix?

During the forum, Lopez said the Department of Transportation (DOTr) has begun implementing relief measures for airline operators to counter rising fuel costs and ensure the sustainability of the aviation industry.

“We started implementing since April 1 the reduction of terminal fees for government operated airports at pagbaba ng sinasabi nating navigational fees or charges, landing and takeoff,” he said.

(The reduction of what we call navigational fees or charges, landing and takeoff.)

“So yung mga airline companies kahit paano makakatipid sila ng as much as P5,000 that will basically translate to the sustainability ng ating mga pamasahe,” he added.

(So the airline companies can somehow save as much as P5,000 that will basically translate to the sustainability of our fares.)