The Civil Aeronautics Board (CAB) said it approved lower passenger and cargo fuel surcharges for January 2024 because of cheaper jet fuel prices.
It said in an advisory the passenger and cargo fuel surcharges for domestic and international flights would be level 6 from Jan. 1 to 31 next year, down from level 7 in December 2023.
Under Level 6 of the passenger fuel surcharge matrix, airlines are allowed to collect a fuel surcharge of P185 to P665 for domestic flights and P610.37 to P4,538.40 for international flights.
The CAB said for cargo fuel surcharge, airlines are allowed to charge P0.95 to P2.78 per kilogram for domestic flights and P3.14 to P23.33 per kg. for international flights under level 6.
“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,” the CAB said.
It 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.
The 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.
Data from the International Air Transport Association (IA)A showed that jet fuel prices reached $102.04 per barrel as of Dec. 15, down 21 percent from November and 26.4 percent from a year ago.