Return of fuel surcharges won’t dent travel demand

CEBU, Philippines — It's not just food prices that are skyrocketing now.

Air passengers may have to pay higher for their airline tickets nowadays as well.

While the government has already approved a fare matrix that includes fuel surcharges for local airlines, Cebu’s airport operator sees the travel demand to continue.

"Historically, airlines have added fuel surcharges to ticket charges and that has not in itself reduced demand as the passengers' reasons for travel still prevailed,"  Andrew Harrison, chief executive advisor at GMR-Megawide Cebu Airport Corp, told The FREEMAN.

"We, therefore, do not envisage a reduction in air travel demand on account of the addition of fuel surcharges," the airport official pointed out.

Sought for comment, Mandaue Chamber of Commerce and Industry vice president Steven Yu said the re-imposition of fuel surcharge might impact travelers' budget.

"The fuel surcharge will affect the budget of domestic travelers but hopefully it will not discourage them from traveling since the travel mindset and lifestyle of the people has really evolved over the last decade," the businessman told The FREEMAN in a phone interview Tuesday.

Earlier, the Civil Aeronautics Board (CAB), the Department of Transportation's aviation regulatory body, has approved the petition of local airlines to bring back fuel surcharges amid the rising aviation fuel costs.

The fare matrix for the surcharge is reportedly to be similar to what is implemented in Japan, which varies depending on destination.

Aviation fuel prices had reached $2.21 per gallon last Sept. 4, according to the US Energy Information Administration. That is up by 14.7-percent.

The CAB had lifted the surcharges in 2015 when global fuel prices were falling.

Prior to that local airlines had been collecting fuel surcharges since 2012, which ranged from P200 to P500 for domestic flights and from $20 to $300 for international flights. (FREEMAN)