Lower fuel surcharge means cheaper air fare next month

MANILA, Philippines — Travelers planning to take a trip in September can expect their ticket prices to go down with the airline industry committing to comply with the government’s order on lower fuel surcharge.

Philippine Airlines spokesperson Cielo Villaluna said the flag carrier will enforce the corresponding changes in its fuel surcharge as instructed by the Civil Aeronautics Board (CAB).

“The new fuel surcharge rates will be applicable to tickets that will be purchased in September,” Villaluna said in a text message to The STAR.

Budget carrier Cebu Pacific also vowed to conform with the CAB order to decrease the fuel cost passed on to passengers. Cebu Pacific chief commercial officer Xander Lao said flight bookings should go up as a result of the surcharge reduction.

“This is a welcome development. We look forward to the lower fuel surcharge which should help make fares more affordable and stimulate air travel,” Lao told The STAR.

AirAsia Philippines spokesman Steve Dailisan said the low-cost carrier will also adjust its ticket prices in line with the CAB directive, as it hopes to capture the expected surge in travel demand for the holiday season beginning September.

“AirAsia Philippines welcomes the lowering of the fuel surcharge cost to Level 9 and will reflect the adjustments to its ticket prices accordingly,” Dailisan said.

“This will benefit many of our guests who are now planning their travels in time for the -ber months,” he added.

In an advisory, CAB set the fuel surcharge to Level 9 for September, from Level 12 in August, to reflect the latest decline in the price of jet fuel. Level 9 means that airline firms can impose a fuel surcharge of P287 to P839 for domestic flights and P947.39 to P7,044.27 for foreign trips.

CAB said airline firms looking to slap the fuel surcharge in September must file its application to the agency on or before the effectivity period. The applicable conversion rate for the collection of fuel surcharge stands at P55.93 to $1.

Fuel surcharge refers to the optional fee that airline firms enforce to recoup their fuel expenses and moderate financial losses due to sudden spikes in jet fuel prices.

Fuel surcharge may be lowered or even removed by CAB depending on the price movement of jet fuel in the international market.