KLM Raising Philippine Air Fares

KLM Royal Dutch Airlines is planning to increase its ticket prices on its route from Amsterdam to Manila via Taipei. According to an application filed at the Civil Aeronautics Board, the European carrier would like to impose a fuel surcharge on its sole route from the Philippines.

klm philippines
Image Source: Wikimedia
In the regulatory filing, KLM requested to impose a fuel surcharge of €157 on economy class tickets to Amsterdam. That amount adds nearly P10,000 to the cost of a ticket. For Business Class passengers, the requested surcharge is €207, representing an added cost of nearly P13,000.

A hearing has been set at the Civil Aeronautics Board on May 6 to determine if the application should be approved. The agency supervises the business activities of both domestic and foreign air carriers that operate in the Philippines. The Civil Aeronautics Board permits airlines to impose fuel surcharges as a means of temporary relief to recover losses resulting from higher jet fuel prices.

According to the latest data from the International Air Transport Association, jet fuel was priced at $289.90 per gallon as of the end of March. Fuel is the largest operating expense of an airline, often representing as much as 60 percent of overall costs. Labour is typically the second highest expense.

KLM currently flies daily from Ninoy Aquino International Airport Terminal 1 to Amsterdam via Taipei. The route used to be operated non-stop but was halted in 2012 citing rising expenses, unreasonable taxes, declining loads, and increasing competition from Gulf carriers. The airline is expected to transfer operations to NAIA Terminal 3 by the end of the summer. KLM is currently the oldest foreign carrier operating in the Philippines. The Dutch carrier began flying to the Philippines in 1951.

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