The Department of Transportation is open to the reimposition of a fuel surcharge on local and international flights to offset the losses of airlines amid rising jet fuel costs.
“We are studying it. DOTr Secretary [Arthur] Tugade and economic managers want to have a template. With this template, if there will be any fluctuations on fuel, the airlines are not required to inform the CAB [Civil Aeronautics Board],” Transportation Undersecretary for aviation and airports Manuel Antonio Tamayo said.
Tamayo said Philippine Airlines and Cebu Pacific were set to present their fuel surcharge matrix before the CAB. He said once the fuel surcharge matrix was approved, this would be presented to the economic managers.
The CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 because of lower jet fuel prices.
A fuel surcharge is a temporary relief granted to airlines to help them recover losses incurred from higher jet fuel prices.
Fuel accounts for about 50 percent of an airline’s operating cost per passenger and is the second-highest expense next to labor.
Cebu Air Inc., the company behind Cebu Pacific, earlier asked the CAB to approve a fuel surcharge amounting to P70 to P280 for domestic flights and $6 to $26 for international flights.
Cebu Pacific is also seeking a fuel surcharge of P1 to P2 for cargo on domestic flights and $0.20 to $0.30 on international flights.
PAL also asked the CAB to approve P282 worth of fuel surcharge each way for Luzon to Luzon and Visayas routes; P405 for Luzon to Mindanao routes; and P158 for Visayas to Visayas routes.
PAL seeks to impose a fuel surcharge of P222 for Mindanao to Visayas/Mindanao routes.