With the increasing cost of fuel, Cebu Pacific started reimposing fuel surcharge on its domestic and international flight last Wednesday.
?We implemented it last week based on the fare matrix. For the shortest destinations Cebu to Bacolod, its P74, Manila to Cebu P170. For overseas flights, the fuel surcharge is P1,425 for Sydney, Melbourne and Dubai,? said Alexander Lao, president and chief executive of Cebu Pacific subsidiary Cebgo.
In a resolution, the Civil Aeronautics Board said the fuel surcharge for passengers of one-way domestic flights would range between P34 and P769, while those flying overseas would be charged P163 to P9,680, depending on the destination and the prevailing jet fuel prices.
Data from CAB showed that jet fuel prices increased by 25 percent to $85.16 per barrel in April.
Fuel surcharge is not 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.
CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 due to lower jet fuel prices.
A fuel surcharge is a temporary relief granted to airlines to help them recover losses incurred from higher costs of fuel.
Fuel accounts for about half of an airline?s operating cost and is the second-highest expense next to labor.
