Airline fuel surcharge downgraded to Level 12

THE Civil Aeronautics Board (CAB) is set to further ease the airline passenger fuel surcharge for a fourth straight period, setting the rate at Level 12 for June 16-30 from Level 13 in the first half of the month.

According to an advisory dated June 11, signed by Executive Director Carmelo L. Arcilla, a Level 12 fuel surcharge ranges between P389 and P1,137 for domestic flights and P1,284.40 and P9,550.13 for international flights, depending on distance.

For airlines collecting surcharges in foreign currency, the CAB said the applicable exchange rate is P61.62 to the dollar.

Fuel surcharges are additional fees imposed by airlines to offset movements in jet fuel prices and are adjusted using the Mean of Platts Singapore benchmark.

According to the International Air Transport Association, jet fuel prices climbed 3.3% week on  week to $146.25 per barrel as of June 5. Year on year, jet fuel prices rose 62.4%.

In April, the CAB started to shift from a monthly review of fuel surcharges to a 15-day monitoring cycle to respond more quickly to movements in fuel prices following the fighting in the Middle East.

The shorter cycle will remain in effect until conditions in the Middle East stabilize or until revised or revoked, Mr. Arcilla has said. — Ashley Erika O. Jose