Domestic air carriers AirAsia Philippines, Cebu Pacific, and Philippine Airlines (PAL) have all confirmed to The Philippine STAR that flight passenger ticket prices will decrease in April following a government order to cut fuel surcharge.
The Civil Aeronautics Board (CAB) on Mar. 15 issued an advisory regarding passenger and cargo fuel surcharge level for domestic and international flights. This decreased the passenger and cargo fuel surcharge rates from the current Level 7 to Level 6 between April 1 to 30.
Under Level 6, passengers are charged P185 to P665 in fuel surcharges for flights within the Philippines and P610.37 to P4,538.40 for international flights—depending on the distance.
Meanwhile, under Level 7, passengers are charged P219 to P739 for domestic flights and P772.71 to P5,373.69 in fuel surcharges.
While CAB issued the advisory regarding the drop in fuel surcharge, the decision to cut ticket prices came from the said airlines.
"Airlines wishing to impose or collect fuel surcharge for the same period for the same period must file its application with this office (CAB) on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level," the advisory read.
According to PAL spokesman Cielo Villaluna, the flag carrier's decision to cut on fuel surcharge will entice travelers to book more long-haul flights to destinations like Perth, Australia; China; and South Korea, to name a few.
Meanwhile, Xander Lao, president and chief commercial officer of Cebu Pacific, said that the airline is anticipating more travel bookings following the change in fuel surcharges.
“Cebu Pacific welcomes this recent development as our flights become even more affordable to our passengers,” Lao said. “Cebu Pacific believes this will encourage more Juans to travel as the summer months begin and is excited to fly more travelers to their dream destinations with year-round low fares,” Lao added.
As for AirAsia's Steve Dalisan, he said that the decrease in fuel surcharges "will also spur economic activity in the destinations where we fly to."
"Our commitment has never wavered in democratizing air travel despite the volatile pricing of fuel," he said.
This is pursuant to CAB Resolution No. 25 (BM 04-05-23-2022), which provides a passenger fuel surcharge matrix. The said resolution defines airline fuel surcharges as optional fees that are imposed and collected by airlines to recover fuel costs and stem losses caused by upward spikes in fuel costs.