Higher air fares loom next month as the Civil Aeronautics Board (CAB) is increasing by a notch the applicable passenger fuel surcharge level for domestic and international flights.
In its latest advisory, CAB said applicable fuel surcharge rate for March would be at Level 7, up from Level 6 which is being implemented this month.
Under Level 7 of the CAB’s fuel surcharge matrix, airlines are allowed to impose an increase P219 to P739 per passenger for domestic flights, and from P722.71 to P5,373.69 for international flights.
Under Level 6, the allowable hike is P185 to P665 for domestic flights, and from P610.37 to P4,538.40 for international flights.
“Airlines wishing to impose or collect fuel surcharge for the same period must file its application with this office on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” the CAB said.
Airline fuel surcharge is an optional fee collected by airlines to recover fuel costs and stem losses due to upward spikes in fuel costs.
