CAB: Airfares to drop next month

Airfares are expected to drop next month mostly because of lower jet fuel prices, according to the Civil Aeronautics Board (CAB). 

Carmelo Arcilla, executive director of CAB said the price of jet fuel prices averaged to P46.73 per liter, which corresponds to Level 9 of the passenger and cargo fuel surcharge matrix in September.  It was lower than August’s Level 12.

Under Level 9 of the new passenger fuel surcharge matrix, airlines are allowed to collect fuel surcharge of P287 to P839 for domestic flights and P947.39  to P7,044.27  for international flights.

The CAB said for cargo fuel surcharge, airlines are allowed to charge P1.47 to P4.31 per kilogram for domestic flights under Level 9 and P4.87 to P36.21 per kg for international flights.

“Airlines wishing to impose or collect fuel surcharge must file its application with CAB on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” Arcilla said.

The CAB said airline fuel surcharge is an optional fee, imposed and collected by airlines to recover fuel costs and stem losses caused by upward spikes in fuel cost.

It said fuel surcharge is not a part of the basic airfare and maybe reduced or removed depending on the price of jet fuel in the market.

“We welcome this positive development and we will carry out the corresponding adjustments in our fuel surcharges. The new fuel surcharge rate will be applicable to tickets that will be purchased in September,” Cielo Villaluna, spokesperson of Philippine Airlines said. 

Steve Dailisan, head of Communications and Public Affairs of AirAsia Philippine said the lower fuel surcharges will reflect to its ticket prices this September. 

” This will benefit many of our guests who are now planning their travels in time for the Ber months,” he added. 

The budget airline is offering P88 promo sale from August 22 to 28 one way from Manila and Cebu hubs to any of its destinations. 

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