PAL seeks fuel surcharge amid higher oil prices
Philippine Airlines (PAL) is looking to impose fuel surcharge across all routes to recover higher expenses due to rising global oil prices.
“I wish we can collect fuel surcharge because price of fuel is going up,” PAL president and chief operating officer Jaime Bautista told reporters.
The flag carrier filed a petition to impose fuel surcharge across all routes with the Civil Aeronautics Board (CAB) in December.
Bautista said fuel costs have gone up more than 20 percent compared to 2016, but fares have been steady or lower than the 2016 level.
“We just hope the CAB considers our petition favorably,” he added.
Bautista said the imposition of fuel surcharge would allow PAL to recover a portion of the additional cost of fuel. He cited that the jet fuel price is now at more than $80 per barrel.
He also said other countries allow carriers to impose fuel surcharge and include such in ticket prices.
In the past, CAB allowed airlines to impose fuel surcharge to recover costs incurred from higher oil prices.
In 2015, the CAB issued a memorandum which called for the lifting of all authority to impose fuel surcharge on international and domestic flights amid the decline in jet fuel prices.
PAL, which recently secured a fourstar rating from air transport rating organization Skytrax, is looking to achieve five-star rating by 2020.
To achieve its goal, the flag carrier is modernizing its fleet and expects to take delivery of 15 new aircraft valued at $2 billion this year.
In particular, it expects delivery of six Airbus A321neos, four Airbus A350-900s and five Bombardier Q400s this year.
PAL intends to use the new A321neos to mount flights to Brisbane in Australia, Sapporo in Japan and New Delhi and Mumbai in India from Manila, while the A350-900s would be used for flights to the US East Coast through the polar region, as well as more routes to Europe.
The new Bombardier Q400s would be utilized for domestic routes.
Bautista said PAL expects to end the year with a fleet of 98 to 100 aircraft.