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TimL

Cost of air travel to increase in the Philippines

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http://cnnphilippines.com/news/2018/09/10/airfares-increase-hike-fuel-surcharge.html

Flights in the Philippines are set to get more expensive after the Civil Aeronautics Board approved the reimposition of fuel surcharges.

CAB had previously disallowed the surcharges in 2015. However, in a statement issued today (Monday, September 10), the board said: “Airline Fuel surcharge is an optional fee, imposed and collected by airlines to recover fuel costs and stem losses caused by an upward spike in fuel cost.

“Fuel surcharges are not a part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market, in accordance with prevailing international practice.”

In its resolution, the CAB noted that that aviation fuel prices have increased to $85.16 per barrel as of April 2018. This is up by 25.24 per cent from the $63.66 per barrel in April 2017.

Under the resolution, passengers of one-way domestic flights may be charged anything up to 769 pesos. For international flights, the maximum surcharge will be 9,860 pesos.

“The applicable fuel surcharge will be determined based on the two-month average of jet fuel MOPS [Mean of Platts Singapore] prices in its peso per litre equivalent, and will be fixed for two months,” the CAB resolution read.

“If the two-month price average of jet fuel per litre falls below 21 pesos, no fuel surcharge will be collected.”

 According to the resolution, the fuel surcharge will take effect immediately and will be the same for all passengers, except for infants travelling without their own allocated seats.

None of the country’s major airlines have yet issued any statement on the reintroduction of fuel surcharges.

  • Hmm thinking 1

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I just finished buying most of my and my wife's 2019 tickets before price increases as a result of this news.

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Does the announcement apply only to tickets purchased in the Philippines? 

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Fuel surcharges are applied differently by country and by each airline. 

US domestic flights may not charge a surcharge for fuel but are alowed to charge for other things. Delta owns a fuel refinery. 

Fuel surcharges are a reasonably transparent way to adjust ticket prices to a volatile commodity.  

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8 hours ago, JJReyes said:

Does the announcement apply only to tickets purchased in the Philippines? 

Most likely only for flights departing the Philippines as thats where hopefully they will fuel the aircraft. 

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