CAB lowers fuel surcharge for July

CAB lowers fuel surcharge for July
Image from Pixabay

AIRLINE operators welcomed the reduction of fuel surcharge passed on to travelers, saying this will encourage more Filipinos to push ahead with their travel plans amid more affordable airfares.

In an advisory signed on June 18, 2024, the Civil Aeronautics Board (CAB) lowered the passenger and cargo fuel surcharge from Level 6 to a notch down at Level 5 for July.

Over the past five months, the fuel surcharge remained at a high of Level 6.

AirAsia Philippines, in a statement, said the reduction to Level 5 next month means that guests can now anticipate lower fees ranging from P151 to P542 for domestic flights and between P498.03 to P3,703.11 for international flights, depending on the destination.

This is lower compared to the P185 to P665 for domestic flights and P610.37 to P4,538.4 for international flights fuel surcharge under Level 6.

A fuel charge, also known as a fuel surcharge, is an additional fee imposed by service providers, such as airlines, shipping companies and logistics firms, to cover the fluctuating costs of fuel.

This charge is typically added to the base fare or shipping cost and varies based on the current price of fuel. It helps companies manage the unpredictability of fuel prices and maintain profitability without frequently changing their base rates.

The amount of the fuel charge can depend on factors such as the distance traveled, fuel consumption and prevailing fuel prices.

“We welcome the Civil Aeronautics Board’s decision to decrease the fuel surcharge. This positive step makes air travel more affordable for passengers and boosts demand as we enter the third quarter,” said Xander Lao, Cebu Pacific president and chief commercial officer, in a text message.

Lao said they are excited to fly more Filipinos to their dream destinations with their low fares, ongoing promotions and newly added routes. Recently, the Gokongwei-led airline announced new routes to Kaohsiung and San Vicente, Palawan.

CAB said airlines wishing to impose or collect fuel surcharge for the same period must file their application CAB office on or before the effectivity period. The applicable conversion rate for the period is $1 to P58.07. / KOC

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