Philippines Air Carriers to Reintroduce Fuel Surcharge on Tickets

Philippines, air transport, fuel surtaxe

The Civil Aeronautics Board (CAB) is expected to officialise this week a decision on several local airlines’ application to impose a fuel surcharge. They are little doubt about the final result and October could see a rise in fares for air travellers.

Philippine Airlines (PAL), Cebu Pacific and Philippines AirAsia have asked the CAB to allow them to pass the additional costs from rising jet fuel prices to their passengers. The CAB had cancelled the fuel surcharge back to 2015 but rising oil prices drove airlines to a U-turn as most of them struggle to limit the possible negative impact of such a measure. Prices of petrol increased by 30% since the beginning of 2018.

At the same time, the Department of Transportation (DoTr) said it has already approved the “fuel surcharge matrix,” which will serve as the guide for future surcharge applications whenever jet fuel prices spike.

“The one that we approved as far as DoTr is concerned is the matrix that was prepared by CAB, which is between a higher matrix proposal and a lower one. Nandun sa gitna [Somewhere in between]. Pero everything naman will depend upon the cost of fuel, yung mga ganyan [But everything will depend upon the cost of fuel, those things],” Transportation Undersecretary for Aviation Manuel Antonio L. Tamayo told reporters during the same event.

The surcharge matrix, which was crafted by the CAB and airline companies, will still need CAB’s final approval.

“We followed the model for Japan, because we want to have a matrix where every time there is an increase in fuel or an increase in anything, or mag-decrease [or there’s a decrease], talagang pupunta pa sa’min [do you need to go to us]? You have a matrix naman, just follow it [Now you have a matrix, just follow it],” Mr. Tamayo said. A rapid decision is however expected.

(Source: Philippines’ Civil Aeronautics Board)