Airfares to get cheaper as CAB lowers fuel surcharge ahead of holiday travel

October 15 ------ Filipinos planning to book their holiday trips have reason to feel relieved in the second half of October, as the government lowered fuel surcharge included in airfares by a notch.

In an advisory, the Civil Aeronautics Board (CAB) said it is bringing down fuel surcharge on passengers to Level 16 for the booking period of Oct. 16 to 31 from the current Level 17. Under Level 16, airlines may impose additional surcharge of ₱525 to ₱1,535 on local flights and between ₱1,733.76 and ₱12,891.29 on international flights.

CAB said airlines wishing to impose and collect surcharge must file their respective applications before Friday, Oct. 16. The regulator has set the exchange rate for carriers selling fares in foreign currencies at ₱62.65 to $1. Airlines are allowed to collect fuel surcharge, which is separate from basic airfare, to help them recover losses triggered by volatility in jet fuel prices.

International Air Transport Association’s (IATA) latest monitoring showed that average jet fuel price inched up by 1.5 percent month-on-month to $187.34 per barrel as of Oct. 2. This slight reduction in fuel surcharge could provide a much-needed boost to the tourism sector by making flights cheaper for travelers planning their holiday trips.

Local airlines are expected to increase flight frequencies, open new routes, and resume previously suspended routes in a bid to meet anticipated robust demand in coming months. Tourism Secretary Dita Angara-Mathay told reporters last week that the holidays may also encourage higher tourist arrivals in the country, as foreigners traditionally travel more during this period to visit popular destinations.

For now, the Department of Tourism (DOT) chief said the country is on track to secure around 6.4 million international visitor arrivals this year, relatively unchanged from the 6.48 million recorded last year. Despite this, it is still too early to tell how the latest reduction in fuel surcharge could affect passenger volume in the remaining months of the year, given its impact on demand in previous months.

For instance, passenger traffic at Ninoy Aquino International Airport (NAIA) declined to 34.98 million in the first eight months of 2026, as higher fuel surcharge rates weighed on demand. Passenger traffic decline at the country’s primary gateway was driven largely by the domestic segment, which fell by more than three percent year-on-year to 18.15 million as of end-August, while international passenger traffic rose by two percent to 16.83 million.

Source: mb.com.ph