Air fuel surcharge seen easing by June

MANILA, Philippines — Air fares may go down by the first half of June as fuel surcharges, which airlines are allowed to collect, ease.

In its latest advisory, the Civil Aeronautics Board (CAB) said the applicable passenger and cargo fuel surcharge for domestic and international flights from June 1 to 15 would be reduced to Level 13, down from Level 15 implemented from May 16 to 31.

At Level 13, airlines can charge a fuel surcharge of P423 to P1,237 for domestic flights and from P1,396.74 to P10,385.42 for international services, depending on the distance.

The amount is significantly lower than the fuel surcharge in effect until May 31 under Level 15, wherein airlines can charge between P491 and P1,436 for local flights and between P1,621.42 and P12,056 for international services.

CAB said airlines planning to collect fuel surcharge for the first half of June must file their application with the agency on or before the effective period.

The fuel surcharge rates should not exceed the amount stated under Level 13.

For the fuel surcharge to be collected in equivalent currency, the CAB set the conversion rate at 61.45 to $1.

A fuel surcharge is an optional fee imposed and collected by airlines to recover fuel costs and stem losses caused by upward spikes in fuel prices.

It is not included in the basic airfare and may be reduced or removed depending on the price of jet fuel in the market.

The fuel surcharge rose to Level 19 in the second half of April, during which airlines were allowed to charge as much as P1,834 for local flights and P15,397.15 for international trips.