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Gov’t OKs 38%-46% Hike in Aviation Fuel Surcharge for Flights Booked in Nov-Dec

Move seen to help airlines cope with increases in jet fuel prices in the past two months
By Pauline Macaraeg |



The Civil Aeronautics Board (CAB), the government body that regulates air transportation in the Philippines, agreed to let airlines impose higher aviation fuel surcharges on flights booked in November and December 2018.


The increases, which aim to help airlines cope with rising jet fuel prices, range from 38.2 percent to 45.9 percent over the previous two-month period.



The higher surcharges are based  on average jet fuel prices and currency exchange rates prevailing in August to September this year, said the CAB in an advisory issued on October 15. They were compared to average prices and exchange rates in the previous two-month period, or from June and July.


“The price of jet fuel averaged to $90.51 per barrel, with the USD exchange rate of Php53.61 for the same period. This is equivalent to Php30.52 per liter, which corresponds to Level 4 in the Passenger Fuel Surcharge Matrix for domestic and international flights,” CAB explained. The average price of aviation fuel in the previous two-month period corresponded only to Level 3 in the CAB’s matrix.


Starting November 1, one-way tickets for domestic flights will have an added charge starting at Php34 up to Php120 per head, depending on the distance.


Meanwhile, airfare for international flights will increase by Php162 for short routes like Taiwan, Hong Kong, Vietnam, Cambodia and Brunei in the next two months. Airfare for long-haul flights, such as those going to North America and United Kingdom, will increase by Php1,557 from the current rates.



 “Airlines wishing to impose or collect fuel surcharge for the same period must file their applications with this Office on or before the beginning of the effectivity period,” CAB said.






Pauline Macaraeg is Entrepreneur PH's data journalist. Follow her on Twitter @paulinemacaraeg

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