Air travelers may soon benefit from lower fares after the Civil Aeronautics Board (CAB) ordered a reduction in the fuel surcharge, bringing it down to its lowest level in three months starting July 1 to 15.
In an advisory issued on June 26, the CAB directed airlines to reduce the passenger fuel surcharge by three levels, from Level 12 to Level 9.
Once implemented, Level 9 will be the lowest surcharge level imposed on passengers since rates peaked at Level 19 in the second half of April.
Under the new rate, airlines may impose fuel surcharges ranging from P287 to P839 for domestic flights and P947.39 to P7,044.27 for international flights, depending on distance.
This is lower compared to Level 12, where domestic surcharges range from P389 to P1,137 and international surcharges from P1,284.40 to P9,550.13.
The CAB said airlines intending to collect the updated fuel surcharge must file an application before July 1. It also maintained an exchange rate reference of P60.99 to $1 for carriers operating in foreign currency.
The adjustment is expected to support passenger demand during the typically slow travel period from July to September, when rainy season conditions reduce travel activity.
Cebu Pacific said it is adjusting capacity and revenue expectations for the third quarter in response to softer demand.
“As we enter the seasonally softer third quarter, we are taking a disciplined approach to capacity and revenue management to match demand, support healthy load factors and maintain affordable fares while managing elevated operating costs, particularly fuel,” Cebu Pacific president and chief commercial officer Alexander Lao said.
On the global front, jet fuel prices have eased in recent weeks, with the International Air Transport Association reporting $119.17 per barrel as of June 19, the lowest in three months.
However, fuel markets remain volatile amid renewed geopolitical tensions affecting supply outlooks and pricing trends.
In April, jet fuel prices surged past the $200-per-barrel mark, forcing airlines to cancel flights and adjust their operations.
Photo courtesy of Grab
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