CAB retains fuel surcharge rates for airlines

The Civil Aeronautics Board (CAB) has decided to maintain the fuel surcharge levels that airlines can impose on passengers in the upcoming month, citing the prevailing lower jet fuel prices.

According to CAB executive director Carmelo Arcilla, the fuel surcharge for July 1 to 31 will remain at level 4, considering that jet fuel prices have averaged between P30 and P33 per liter. This follows the fuel surcharge level of 4 that was in effect for the month of June.

Under the current Level 4, airlines have the authority to impose a fuel surcharge per passenger ranging from P117 to P342 for domestic flights, and P385.70 to P2,867.82 for international flights.

In the case of cargo, airlines are permitted to collect fuel surcharges between P0.60 per kilogram and P1.76 per kilogram for domestic shipments, and P1.98 per kilogram to P14.74 per kilogram for international shipments.

Arcilla said airlines intending to impose or collect fuel surcharges must submit their applications to the CAB before the designated period, with the rates not exceeding the specified levels mentioned above.

The CAB clarified that the airline fuel surcharge is an optional fee imposed and collected by airlines to offset fuel costs and mitigate losses resulting from significant increases in fuel prices.

It further explained that the fuel surcharge is distinct from the basic airfare and may be adjusted or eliminated based on the prevailing jet fuel prices in the market.