Gov’t orders cut in airport charges amid jet fuel surge

The government has ordered a reduction in passenger service charges at state-run airports to help airlines cope with soaring jet fuel prices linked to the ongoing conflict in the Middle East.

In a statement on Friday, the Department of Transportation (DOTr) said Transportation Secretary Banoy Lopez has directed the Civil Aviation Authority of the Philippines (CAAP) to cut Passenger Service Charges (PSC) and airport navigation charges at all CAAP-operated airports to help lower airline operating costs.

“The DOTr, CAAP, and CAB continue to take action to ease the burden on airline passengers following the increase in jet fuel prices worldwide due to the war in the Middle East,” the DOTr said.

The agency said its latest monitoring showed jet fuel prices nearly doubled, rising from $90.87 per barrel on 19 February to $188.2 per barrel on 9 March.

“Because of this, the Transportation Secretary has instructed CAAP to reduce PSC and airport navigation charges at all CAAP-operated airports as part of measures to help lower the operating costs of airlines,” the statement read.

Meanwhile, the CAB has shortened the evaluation and implementation period for fare adjustments from one month to 15 days to allow any drop in jet fuel prices to be reflected in airline ticket prices more quickly.

“The CAB has also shortened the evaluation and implementation period from one month to just 15 days so that any decrease in jet fuel prices can be reflected in fares more quickly,” the agency said.

“The government continues to monitor the situation and coordinate with the aviation industry to ensure that air travel remains safe, reliable, and affordable for the public,” it added.