Reduction in fuel surcharges will lower fares in November which is welcomed by local carriers.
The Civil Aeronautics Board (CAB) reduced the allowed fuel surcharge in November which makes plane fares to be lower for air travelers.
Fuel surcharges are optional fees imposed and collected by airlines to recover fuel expenses and mitigate losses caused by increases in fuel prices. It is not included in the base fare and is decreased or eliminated based on market jet fuel pricing.
According to the International Air Transport Association, jet fuel cost $144.45 a barrel as of October 14, which is 47.3 percent more than the year-ago price but 18.8 percent lower than the previous month. Fuel contributes to more than 60 percent of carrier expenses.
The air traffic regulator said in an advisory that the fuel surcharge level was cut from Level 9 to Level 8 for November due to lower market jet fuel costs. Additionally, the average price of jet fuel is P42.87 per liter, which corresponds to Level 8 of the Passenger and Cargo Fuel Surcharge Metric.
Airlines may charge travelers from P253 to P787 per flight sector in fuel surcharge depending on the distance traveled. Meanwhile, international travelers must pay P835.05 to P6,208.98 for each flight, Business Mirror reported.
Local carriers welcomed the good news
AirAsia, a low-cost airline, is expecting a high average of 90 percent to 95 percent in domestic load factor this fourth quarter.
“With the goal of making travel more affordable as demand peaks, our guests can expect regular promos from AirAsia Philippines as we near the end of the year,” AirAsia Philippines Spokesperson Steve Dailisan said.
Meanwhile, Philippine Airlines (PAL) spokesperson Cielo Villaluna said that the “good news” complements PAL's ongoing expansion of flying capacity for both domestic and international route networks.
“We are pleased to comply. We shall implement the adjustments to our fuel surcharges in line with the latest CAB directive. The adjusted fuel surcharges apply to tickets that will be purchased in November,” she added.
Cebu Pacific Chief Commercial Officer Xander Lao remarked that the lower costs will encourage more travel, particularly during the holidays.
“We look forward to the lower fuel surcharge which should help make fares more affordable and stimulate air travel as we get nearer the Christmas season. Cebu Pacific will adjust its fuel charges accordingly which should provide passengers great value,” he said.
With the holidays approaching, the lower cost of air travel will open up more opportunities for tourists and families alike. This would boost local tourism as well as precious time spent with loved ones.
Tags: #PlaneFares, #FuelSurcharge, #LocalCarriers