Tigerair Philippines Raising Fares on International Routes

Budget carrier Tigerair Philippines, a subsidiary of low-cost carrier Cebu Pacific, is seeking the approval of the Civil Aeronautics Board to raise fuel surcharges on a number of its international routes. The airline has filed a petition to raise charges on flights to Hong Kong, Singapore, and Phuket. 

tigerair cebu pacific
Copyright Photo: Angelo Agcamaran/PPSG
According to the petition, the fuel surcharges on international tickets will be raised on the following routes:
  • Clark-Hong Kong ($10 to $25)
  • Clark-Singapore ($20 to $35)
  • Kalibo-Singapore ($26 to $40)
  • Cebu-Singapore ($25 to $40)
  • Manila-Phuket (P1,100 to $45)
Last month, Tigerair Philippines already implemented higher surcharges on new and existing routes including:
  • Clark to Bangkok ($20 from P900)
  • Clark to Hong Kong ($10 from P500)
  • Clark to Singapore ($20 from P860)
  • Cebu to Bangkok ($35)
  • Kalibo to Hong Kong ($25)
  • Cebu to Singapore ($25)
However, international routes were not the only flights affected by Tigerair increases. The fuel surcharge on domestic flights to Cebu, Bacolod, Kalibo, Puerto Princesa, Iloilo, and Tacloban was also raised by P100 from P300 to P400. The fuel surcharge on Davao flights from Manila increased from P400 to P500. The increased domestic fuel surcharges apply to all flights originating from Tigerair's domestic hubs at Clark and Manila. 

Tigerair's parent company Cebu Pacific also imposed higher fuel surcharges on 22 international destinations from its various hubs throughout the Philippines. The airline cited the rising aviation fuel costs and the depreciation of the peso against the dollar as reasons for the fuel surcharge increases. Airlines in the Philippines are permitted to impose fuel surcharges as temporary relief against rising jet fuel prices in the global market. Fuel accounts for nearly 50 to 60 percent of an airline's operating costs per passenger. It is typically the second highest expense behind labour.

According to the Jet Fuel Price Monitor of the International Air Transportation Association, the latest price of jet fuel averaged at $121.40 per barrel as of March 14. The IATA expects jet fuel prices to rise to as much as $124.20 per barrel this year. 

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