Fuel surcharge level lowered for January

THE Civil Aeronautics Board (CAB) has reduced the passenger and cargo fuel surcharge level for January 2024 due to cheaper jet fuel prices.

In an advisory, the CAB said that passenger and cargo fuel surcharges for domestic and international flights would be at level 6 for January 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.

For the cargo, airlines are allowed to charge P0.95 to P2.78 per kilogram for domestic flights and P3.14 to P23.33 per kilo for international flights.

«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 regulator said.

The airline fuel surcharge is an optional fee that can be imposed and collected by airlines to recover fuel costs and stem price spike losses.

It 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 showed that jet fuel prices reached $102.04 per barrel as of December 15, down 21 percent compared to November and 26.4 percent lower a year ago.

The CAB suspended the imposition of fuel surcharge in all domestic and international flights in 2015 because of lower jet fuel prices.