Airlines expect more passengers after CAB cuts fuel surcharge

LOCAL airlines expect a rise in passenger numbers next month following the reduction of the applicable fuel surcharge for both domestic and international flights by the Civil Aeronautics Board (CAB).

In an advisory on Tuesday, the CAB lowered the fuel surcharge, which is added to the base fare, to Level 5 for Feb. 1-29 from Level 6 in January.

At Level 5, the domestic passenger surcharge ranges from P151 to P542, while for international flights, the surcharge varies between P498.03 and P3,703.11.

At Level 6 currently, the domestic passenger surcharge ranges from P185 to P665, while the international surcharge ranges from P610.37 to P4,538.40.

A fuel surcharge may be collected by airlines based on movements in jet fuel prices, using a benchmark known as MOPS (Mean of Platts Singapore).

“Airlines wishing to impose or collect fuel surcharges for the same period must file their applications with this Office on or before the effectivity period, with fuel surcharge rates not to exceed the above-stated level,” the CAB said in the advisory.

The CAB said the applicable conversion rate for February is P55.64 to the dollar.

AIRLINES

“While aviation fuel prices remain volatile, the adjustment in fuel surcharge cost comes in very timely with many Philippine festivals happening from its period of implementation,” Steve F. Dailisan, head for communications and public affairs at AirAsia Philippines, said in a Viber statement.

Budget carrier Cebu Pacific said it is hoping that the lower surcharge would encourage passengers to travel more.

“With the decrease in fuel surcharge, we’re excited to offer even more affordable flights. We hope this encourages our passengers to confidently pursue their travel plans as we enter the new year. Cebu Pacific looks forward to flying more people to their top destinations with our low fares and seat sales,” Alexander G. Lao, president and chief commercial officer of Cebu Pacific said in a Viber message on Tuesday.

Meanwhile, flag carrier Philippine Airlines said the company will lower its fuel surcharge complying with the advisory of CAB.

“We will faithfully comply with the lower fuel surcharge which will take effect next month. We appreciate our passengers’ loyalty and support through the years,” Philippine Airlines Spokesperson Cielo C. Villaluna said in a statement. —