Airfares take another hit as fuel surcharge jumps

Air travelers will have to dig deeper into their pockets in the first half of October as airlines get room to slap hundreds — and for some overseas trips, thousands — of pesos more on ticket prices following a sharp increase in the allowable fuel surcharge.

Fuel surcharge to Level 17

The Civil Aeronautics Board (CAB) raised the passenger and cargo fuel surcharge to Level 17 for 1 to 15 October, three notches above the Level 14 ceiling in effect during the second half of September.

For domestic passengers, the adjustment means airlines may collect P559 to P1,635 per passenger for a one-way flight, depending on distance, based on CAB’s fuel surcharge matrix.

That is P102 to P299 more than the P457-to-P1,336 range allowed under Level 14.

The bite is much bigger for Filipinos flying abroad. For international flights originating from the Philippines, the maximum surcharge under Level 17 ranges from P1,846.10 to P13,726.58 per passenger, one-way, depending on the destination.

Compared with Level 14, that translates to an additional P337.02 to P2,505.87 for a one-way ticket — or potentially more than P5,000 extra on a round trip at the longest distance band if an airline collects the maximum permitted amount.

Increase particularly steep for long-haul travelers

The increase is particularly steep for long-haul travelers. Under Level 17, airlines may charge P6,352.23 for Australia and Middle East routes, P8,018.94 for New Zealand, Honolulu and Ethiopia, and P13,072.93 for flights to North America, the United Kingdom and the Netherlands.

Flights covering more than 14,000 kilometers carry the biggest potential add-on at P13,726.58 one-way, up from P11,220.71 under Level 14.

Closer international destinations will also become more expensive. The ceiling is P1,846.10 for Taiwan, Hong Kong, Vietnam, Cambodia and Brunei; P2,506.52 for China; P2,553.19 for Singapore, Thailand, Malaysia and Guam; and P2,871.83 for Indonesia, Japan, South Korea, Port Moresby and India.

For domestic travel, CAB allows a P559 surcharge for flights of up to 200 kilometers, rising progressively to P1,635 for routes longer than 1,001 kilometers.

Airlines can’t automatically charge full amount

The higher ceiling does not mean airlines will automatically charge the full amount. Carriers that intend to impose or collect a fuel surcharge must apply with CAB, and their charges cannot exceed the Level 17 cap.

CAB also raised the conversion rate for fuel surcharges collected in foreign currency to P62.71 per dollar, from P62.25 during the 16-to-30 September period.