TRAVELERS can look forward to more affordable airfares next month as the Civil Aeronautics Board (CAB) reduces fuel surcharges, coinciding with the start of the “Ber” months.
In an advisory, CAB said passenger and cargo fuel surcharge for domestic and international flights was set at Level 5 for Sept. 1 to 30, 2024, down from the current Level 6.
According to low-cost carrier AirAsia Philippines at Level 5, fuel surcharge cost is expected to go down by P800 for international flights and P542 for domestic flights which would immediately reflect on ticket prices next month.
A fuel surcharge is an additional fee imposed by airlines on top of the base fare to cover the fluctuating costs of fuel. Since fuel prices can vary significantly, airlines use fuel surcharges to adjust ticket prices according to current fuel costs.
AirAsia Philippines said the lowering of the fuel surcharge will have a huge impact on the public’s booking behavior.
“Filipinos are always on the lookout for discounts. Any budget saved from airfares can be used as an additional budget for hotels, restaurants, activities or souvenirs,” said Steve Dailisan, first officer and head of AirAsia Philippines Communications and Public Affairs.
The airline is looking to close 2024 with more than eight million guests flown as it continues to serve 165 domestic and 71 international weekly flights.
In the Philippines, the “Ber” months refer to the period from September to December. This time is significant for travel because it marks the beginning of the long Christmas season, which is celebrated with much enthusiasm in the country. The “Ber” months often see an increase in domestic and international travel as Filipinos prepare for the holidays, visit family, attend festivals and enjoy various seasonal activities.
Cebu Pacific also welcomed the recent adjustment describing it as a “positive development.”
“We welcome the decision of the Civil Aeronautics Board to lower the fuel surcharge for the month of September. This recent adjustment is a positive development that supports our efforts to offer more affordable travel options,” said Xander Lao, CEB president and chief commercial officer.
“Cebu Pacific is dedicated to offering value-for-money fares to our customers and looks forward to carrying more passengers as we continue to boost connectivity across all our hubs,” he added.
Cebu Pacific carried six million passengers in the second quarter of 2024, the highest passenger count in a single quarter in its history.
This is 10 percent higher than the previous year fueled by the summer traffic from April to May, the school break in June, and additional frequencies in high-traffic destinations such as Cebu, Davao and General Santos.
Strong demand for regional destinations such as Hong Kong, Japan, Vietnam and Australia also contributed to the growth.
Meanwhile, CAB said airlines wishing to impose or collect fuel surcharges for the same period must file their application with this office on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level.
The applicable conversion rate for the period is $1 to P58.29. / KOC