Plane fares rising next month as fuel surcharges more than double

MANILA, March 18 ------ Plane fares are set to get more expensive next month as airlines have been allowed to charge higher fuel surcharges as oil prices continue to skyrocket. The Civil Aeronautics Board on Tuesday said it has raised the fuel surcharge level from Level 4 to Level 8 from April 1 to 15. For domestic passengers, this means surcharges of between P253 and P787, depending on the distance. This is more than double the previous Level 4 surcharges of between P117 to P342.

Under the Level 8 bracket, international passengers can expect to pay between P835 and P6,209 in additional fees, depending on the distance of the destination. This is more than double the previous surcharges of between P386 and P2868. The regulator announced Tuesday that the new rates for both domestic and international flights will take effect from April 1 to 15. In a significant policy shift aimed at managing extreme market volatility, the CAB is transitioning from a one-month monitoring cycle to a 15-day window.

The agency stated this "shorter cycle of 15-days during this extraordinary period of high volatility in fuel prices shall allow faster response to market changes reducing the lag between actual fuel costs and applicable fuel surcharge." This interim measure is "intended to cushion the impact of fuel price volatility and manage increasing costs," while allowing for "faster reduction when fuel prices decline," CAB said.

The CAB noted that the policy remains a "temporary measure" until global oil prices stabilize. Low-cost carrier AirAsia Philippines was quick to react to the hike, acknowledging the financial pressure the new rates place on the riding public. "We acknowledge the recent announcement by the Civil Aeronautics Board setting the interim fuel surcharge to Level 8. We understand that any increase in travel costs may affect passengers," the airline said in a statement. "We continue to reaffirm our commitment to keeping fares affordable for travelers as a leading low-cost carrier."

The next surcharge level is expected to be announced three days before the mid-April expiry.

Source: news.abs-cbn.com