The Civil Aeronautics Board allowed airlines to collect up to P411 for domestic flights and P5,189 for international flights to recover from high jet fuel prices.
The regulator said the price of fuel surcharge reached “level 4” for the month of November and December this year, based on jet fuel prices and foreign exchange rate in the previous months.
“For August to September this year, the price of jet fuel averaged to $90.51 per barrel, with the US dollar exchange rate of P53.61 for the same period. This is equivalent to P30.52 per liter, which corresponds to level 4 in the passenger fuel surcharge matrix for domestic and international flights,” the CAB said.
Under level 4, the fuel surcharge for passengers of one-way domestic flights would range between P108 and P411, while those flying overseas would be charged P543 to P5,189.
Under level 0, the price of jet fuel is P21 per liter and below; level 1, more than P21 to less than P24 per liter; level 3, P27 to less than P33; level 5, P33 to less than P36; level 6, P35 to less than P39; and level 7, P39 to less than P42.
“Airlines wishing to impose or collect fuel surcharge for the same period must file their application with this office on or before the beginning of the effectivity period, with fuel surcharge rates not exceeding the stated level,” the aviation regulator 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 an upward spike in fuel cost.
The agency said fuel surcharge is not a part of the basic airfare and may be reduced or removed depending on the price of jet fuel in the market, in accordance with prevailing international practice.
Jet fuel cost is the largest expense by an airline operator and as a global practice, airlines, “due to competition prefer to charge fuel surcharge separately rather than increase fares when fuel prices surge,” it said.
The agency said infants without seats are exempt from the fuel surcharge.
The CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 because of lower jet fuel prices but decided to implement it again this year, as prices surged.
Philippine Airlines and Cebu Pacific earlier imposed fuel surcharges, while Air Asia Philippines said it would absorb the cost of fuel surcharge for its passengers.