Regulator lowers fuel surcharge for April

THE Civil Aeronautics Board (CAB) has downgraded the fuel surcharge level for next month, a development that could lead to cheaper air fares.

The April 1 to 30 surcharge was set at Level 6 as the price of jet fuel averaged between P36 and P39 per liter, CAB Executive Director Carmelo Arcilla said.

The surcharge is currently at Level 7 with jet fuel at P39 to P42 per liter.

Under the passenger fuel surcharge matrix, airlines can collect fuel surcharge of P185 to P665 for domestic flights and P610.37 to P4,538.40 for international flights under Level 6.

For cargo, airlines are allowed to charge P0.95 to P2.78 per kilogram for domestic flights and P3.14 to P23.33 per kilo for international flights.

“Airlines wishing to impose or collect fuel surcharge must file its application with CAB on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” Arcilla said.

The fuel surcharge is an optional fee that airlines can impose to recover fuel costs and stem losses caused by fuel price spike.

It is not a part of the basic airfare and can be reduced or removed depending on the price of jet fuel.

Sought for comment, Steve Dailisan, AirAsia Philippines Communications and Public Affairs head, said “any form of reduction in ticket value will not only motivate people to travel but also spur economic activity in the destinations where we fly to.”

“Our commitment has never wavered in democratizing air travel despite the volatile pricing of fuel,” he added.