Philippine airfares set to rise as fuel surcharge escalates

September 16 ------ Travelers planning for their next dream getaway are in for a rude awakening, as the government allows airlines to collect a higher surcharge until the end of September in response to soaring jet fuel prices.

In an advisory on Friday, Sept. 11, the Civil Aeronautics Board (CAB) raised the applicable fuel surcharge to Level 14 for the period of Sept. 16 to 30, from the current Level 13. Under Level 14, airlines may impose a minimum surcharge of ₱457 for short-distance local flights and as much as ₱1,336 for longer routes, such as from Manila to General Santos City.

Those who are planning to go overseas will pay a higher surcharge of between ₱1,509.08 and ₱11,220.71, depending on the distance. Based on the CAB’s matrix, travelers who are interested in booking flights to popular tourist destinations like Thailand and Singapore would have to prepare for a surcharge of ₱2,087.09.

If the next destination is South Korea or Japan, the surcharge will rise to ₱2,347.56, while those visiting the Middle East or Australia would pay ₱5,192.59. The surcharge could go as high as ₱10,686.39 for long-haul flights to the United States, Canada, and the United Kingdom, according to the CAB.

The CAB said airlines wishing to impose or collect the fuel surcharge must file their applications before Sept. 16. The exchange rate for airlines selling fares in foreign currencies is ₱62.25 to $1. The regulator allows airlines to collect a fuel surcharge from passengers to help them recover losses caused by volatility in jet fuel prices.

Latest data from the International Air Transport Association (IATA) showed that the average price of jet fuel rose month-on-month by nine percent to $171.03 per barrel as of Sept. 4. Jet fuel prices in Asia and Oceania are among the lowest in the global market, with an average of $157.89 per barrel, based on IATA monitoring. The price of jet fuel is on an upward trajectory again after recent tensions in the Middle East threatened to impact the supply of the commodity. At present, the CAB is adjusting the fuel surcharge every 15 days instead of the usual one-month coverage to provide greater flexibility in setting rates based on prevailing jet fuel prices.

Source: mb.com.ph