Rejoice, travelers! Airfares will become lower beginning March as the applicable fuel surcharge level required by airlines slumped on the continued decline of jet fuel prices.
The Civil Aeronautics Board (CAB) said that passenger fuel surcharge for domestic and international flights from March 1 to April 30, 2019, would fall to Level 2 from Level 3 during the January to February period.
Under Level 3 of the fuel surcharge matrix, airlines are allowed to impose an addition of P45 to P171 per passenger for domestic flights, and P218 to P2,076 for international flights.
This is compared to the existing P74 to P291 allowable increase for domestic passengers, and P381 to P3,632 for international passengers under Level 3.
“The average aviation fuel prices for the months of December 2018 to January 2019 was $73.50 per barrel, which is equivalent to P24.32 per liter. This corresponds to Level 2 in our fuel surcharge matrix. This will be effective on March 1,” CAB executive director Carmelo Arcilla told The STAR.
“We are experiencing a downward trend in the surcharge from Level 4 to Level 3 effective Jan. 1, 2019, and now Level 2 effective March 1, 2019,” Arcilla added.
The fuel surcharge is a way in which airlines can somewhat recuperate losses from the rising fuel prices and the weakening of the peso to the dollar. Fuel cost accounts for over 50 percent of the total operating costs of airlines.
News source: Philippine Star