AIR travelers can expect cheaper tickets next month as the Civil Aeronautics Board (CAB) yesterday lowered the allowed fuel surcharge to Level 4 for June 2023 from the prevailing Level 5.
A Level 4 fuel surcharge will mean that passengers purchasing tickets in June will only be charged P117 to P342 for domestic flights, and P385.70 to P2,867.82 for international flights originating from the Philippines, depending on the distance, according to the CAB.
The fuel surcharge under Level 5 for domestic flights ranges from P151 to P542. For international flights originating from the Philippines, the fuel surcharge ranges from P498.03 to P3,703.00 at Level 5, it added.
The CAB said it trimmed the fuel surcharge level due to a steady decrease in jet fuel prices. Fuel component is about 50 percent of the airline’s costs.
The applicable fuel surcharge level, which is the ceiling rate for fuel surcharge, is determined based on the two-month average of jet fuel MOPS (Mean of Platts Singapore) prices in its peso-per-liter equivalent.
CAB noted that airlines wishing to collect fuel surcharge for the same period must file their application on or before the effectivity period, with fuel surcharge rates not exceeding the allowed level.
The airlines are also allowed to collect fuel surcharge rates that are lower than the stated level if they choose to do so, depending on how they want to compete with other carriers. (ABS-CBN News)
