Cathay, Dragon Air seek higher fuel surcharge

MANILA, Philippines - Two foreign airlines are seeking the green light from the Civil Aeronautics Board (CAB) to raise by as much as 8.7 percent the fuel surcharge imposed on their passengers on the back of the rising price of aviation fuel in the world market.

In separate petitions filed before the CAB, Cathay Pacific Airways Ltd. and Hong Kong Dragon Airlines Ltd. are seeking authority to impose an upward adjustment of fuel surcharge on international passenger tickets.

Cathay Pacific and Dragon Air seeks to impose a six-percent increase fuel surcharge to $123.3 per passenger from $116.4 for flight coupons between Hong Kong and South West Pacific, North America, Europe, Middle East, Africa, and South Asian sub-continent including same day transit within 24 hours in Bangkok or Singapore.

The foreign airlines also intend to raise the fuel surcharge for other flights by 8.7 percent to $31 per passenger from $29.1 per passenger.

Airlines seeking to adjust their fuel charges based on the movement of jet fuel prices in the world market need to file an application with the CAB.

The CAB allows airlines to impose fuel surcharge on international and domestic passengers as a temporary relief to help them recover losses arising from the increase in jet fuel prices in the world market.

Latest results of the Jet Fuel Price Monitor of the International Air Transportation Association (IATA) showed average price of jet fuel as of Feb. 15 stood at $138.3 per barrel or 2.5 percent higher compared to the same period last year.

So far, price of jet fuel in the world market averaged $133.7 per barrel or higher than the full year target of $130.3 per barrel set by IATA translating to an additional $12 billion in additional fuel cost for all airlines worldwide.

Cathay Pacific flies along the Hong Kong-Manila route 37 times a week and seven times between Hong Kong and Cebu City while Dragonair has daily flights between Clark Freeport and Hong Kong as well as services the Manila-Hong Kong route seven times a week.