CAB lowers June fuel surcharge

BY EMMIE V. ABADILLA

  

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AT A GLANCE

• The Civil Aeronautics Board’s (CAB) on Thursday (May 18) lowered the applicable fuel surcharge rates for domestic and international flights by another notch, from the current Level 5 to Level 4, effective June, 2023.

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The Civil Aeronautics Board’s (CAB) on Thursday, May 18, lowered the applicable fuel surcharge rates for domestic and international flights by another notch, from the current Level 5 to Level 4, effective June, 2023.

The move is expected to bring down air fares and boost travel demand.

Under the Level 4 matrix of the CAB, passengers buying tickets in June will only be charged P117 to P342 for domestic flights.

Under the current Level 5 matrix, passengers incur an additional surcharge of P151 to P542 for domestic flights.

On the other hand, international passengers originating from the Philippines, will be charged P385.70 to P2,867.82 next month, depending on the distance.

At present, international passengers are paying surcharges ranging from P498.03 to P3,703.00.

Airlines wishing to collect yhe fuel surcharge from June 1 to 30, 2023 must file their application with the CAB on or before the effectivity period, according to the agency's advisory.

The CAB has been steadily bringing down the fuel surcharges from Level 6 in April and Level 7 in March with the decline in the price of jet fuel prices, which account for 50 percent of the airlines' costs.

However, airlines can collect fuel surcharge rates that are lower than the CAB matrix level, or they may not impose it at all, depending on how they want to compete with other carriers.

Travel demand is sensitive to pricing and any form of reduction in air fares can encourage more people to fly.