Tigerair Philippines to Raise Fuel Surcharges
Tigerair Philippines has filed an application with the Civil Aeronautics Board to increase its fuel surcharge on international flights by up to 90%.
In the Philippines, the Civil Aeronautics Board is responsible for granting permission to airlines to impose fuel surcharges as a means of recovering losses resulting from higher jet fuel prices. Tigerair will be seeking to impose fuel surcharge increases between 60% and 90% on its three international routes. That represents a P300 to P400 increase per flight.
The planned increase in fuel surcharges would roll out as followed:
Fuel accounts for fifty to sixty percent of an airline's operating costs on a per passenger basis. It is the second highest expense next to labour. The International Air Transportation Association reported in its Jet Fuel Price Monitor that the cost of fuel rose by 4.5% to $123.50 per barrel. That represents an additional $4 billion in fuel expenses to the global airline industry.
Tigerair Philippines recently announced that it plans to increase its presence in China in 2014.
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| Image Source: Channel News Asia |
The planned increase in fuel surcharges would roll out as followed:
- Clark to Singapore and vice versa, from P500 to P800 (+60%)
- Clark to Bangkok and vice versa, from P500 to P850 (+70%)
- Kalibo to Singapore and vice versa, from P500 to P900 (+90%)
Fuel accounts for fifty to sixty percent of an airline's operating costs on a per passenger basis. It is the second highest expense next to labour. The International Air Transportation Association reported in its Jet Fuel Price Monitor that the cost of fuel rose by 4.5% to $123.50 per barrel. That represents an additional $4 billion in fuel expenses to the global airline industry.
Tigerair Philippines recently announced that it plans to increase its presence in China in 2014.
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