In case you missed it, the Civil Aeronautics Board (CAB) has allowed airlines operating in the Philippines to re-impose an aviation fuel surcharge to help them offset the additional operating costs due to higher jet fuel prices in the international market.
On August 17, the CAB adopted a resolution detailing the approved fare matrix for passenger fuel surcharge for domestic and international flights. The resolution was published in a general circulation newspaper on August 30.
The fare matrix details how much fare increase airlines can impose per passenger for a one-way trip. It varies with the distance of the flight as well as the prevailing local price of jet fuel per liter. It adopted seven price brackets or ranges for aviation gas, ranging from more than P21 to less than P24, to P39 to less than P42. If the price falls below P21 per liter, the surcharge is suspended.
For example, surcharge per head for a short domestic trip that’s less than 200 kilometers in distance (such as Cebu-Bacolod) could rise to P34 if the prevailing price is between P21 and P24 per liter. If the price goes up to between P39 and P42, the surcharge also rise to P201 per passenger. Check out the infographic from Entrepreneur Philippines:
In contrast, the surcharge for a trip that exceeds 1,000 kilometers, such as Manila-General Santos, could range from P132 to P769, depending on the current jet fuel price.
The aeronautics board said these measures are done to cope with volatile fuel costs and help carriers maintain revenues. Airlines, however, have to submit petitions to impose the surcharges to the board before they increase their fares.
Two of the country’s biggest airlines, Philippine Airlines and Cebu Pacific Air, already received authorization from CAB to impose surcharges in their airfares. Both companies have started to increase their ticket prices on September 19.
This story originally appeared on Entrepreneur.com.ph.
* Minor edits have been made by the Femalenetwork.com editors.