The Civil Aeronautics Board (CAB) raised the passenger fuel surcharge to Level 8 effective April 1 to April 15 up from Level 4 in March, more than doubling current rates due to volatile fuel prices.
The increase will be implemented under an extraordinary 15-day cycle instead of the one month cycle and based on a conversion rate of PHP58.11 to the US dollar.
Under Level 8, airlines may impose fuel surcharges ranging from PHP253 to PHP787 for domestic flights, up from PHP117 to PHP342 under Level 4.
For international flights, the surcharge will be from PHP835.05 to PHP6,208.98, depending on the distance from the previous range of PHP385.70 to PHP2,867.82.
“The shorter cycle of 15-days during this extraordinary period of high volatility in fuel prices shall allow faster response to market changes, reducing the lag between actual fuel costs and applicable fuel surcharge,” the CAB said in an advisory on March 16.
“The more gradual and incremental implementation of fuel surcharge to be collected from passengers can be a way of softening the impact of higher fuel surcharge increases, and enable faster reduction when fuel prices decline,” the CAB said.
According to CAB, the shorter cycle of 15-days during this extraordinary period of high volatility in fuel prices shall allow faster response to market changes reducing the lag between actual fuel costs and applicable fuel surcharge.
“This is intended to cushion the impact of fuel price volatility and manage increasing costs. The more gradual and incremental implementation of fuel surcharge to be collected from passengers can be a way of softening the impact of higher fuel surcharge increases, and enable faster reduction when fuel prices decline,” the advisory said.
The next and succeeding applicable levels shall be announced at least 3 days prior to effectivity, and the evaluation period shall transition to 15-days in accordance with the 15- day implementation period.
This interim measure shall be in effect until the current situation stabilizes, or as may be revised or revoked accordingly. 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, it added.
