Airfares soaring to new highs

As jet fuel prices spike

MANILA, Philippines — Filipinos booking their holiday flights in October will find themselves paying more – some by as much as nearly P14,000 – as the government approved a new round of fuel surcharge hike.

In an advisory, the Civil Aeronautics Board (CAB) said it is raising the fuel surcharge to Level 17 for Oct. 1 to 15, from Level 14 currently.

This marks the highest fuel surcharge since the Level 18 applied in the first half of May, showing how jet fuel prices have never normalized since the US and Israel attacked Iran on Feb. 28.

At Level 17, airlines can collect a fuel surcharge of P559 to P1,635 for domestic flights. Further, they may impose an additional fee of P1,846.1 to P13,726.58 for international services.

Filipinos headed for Malaysia, Singapore and Thailand have to pay P2,553.19 more under Level 17. Travelers bound for Indonesia, Japan and South Korea will be asked to settle a fuel surcharge of P2,871.83.

The harshest fuel surcharge will be collected from travelers going on transpacific trips, reaching P8,018.94 for flights to Honolulu and P13,072.93 for departures to North America.

Locally, the highest fuel surcharge will be applied on Manila flights to General Santos at P1,635.

Manila trips to Cotabato, Davao and Zamboanga will have the second highest fuel surcharge among domestic destinations at P1,524.

CAB said airlines wishing to collect the fuel surcharge must submit an application to the agency before October. CAB also told carriers transacting in foreign currencies to observe an exchange rate of P62.71 to $1 in computing their fuel surcharge.

Based on the monitor of the International Air Transport Association, jet fuel prices have gone up by 24 percent on a monthly basis to $194.90 per barrel as of Sept. 18. Prices are expected to keep on fluctuating in the absence of a peace deal in the Middle East.

Last week, US President Donald Trump rejected Iran’s offer for a ceasefire, as Tehran seeks to reopen the Strait of Hormuz temporarily.

Historically, October marks the start of the peak demand for air travel, as Filipinos go on holiday trips for the All Saints and Christmas breaks.