Philippine Carriers Continue to Seek Fuel Surcharge Increases

The cost of fuel surcharges being added to airline tickets in the Philippines is beginning to make passengers question the transparency of promo fares when fuel surcharges are adding significant costs to the price of airfares. Since January, Philippine carriers have been applying for increases on the existing fuel surcharges imposed on a number of international and domestic routes. According to the latest filings at the Civil Aeronautics Board, the trend is continuing.

Copyright Photo: Angelo Agcamaran/PPSG

A number of local carriers are currently seeking the approval of the Civil Aeronautics Board to increase or impose fuel surcharges on domestic and international flights. According to the most recent filings, Cebu Pacific, Air Busan, Tigerair Philippines, and SkyJet have all filed applications with the Civil Aeronautics Board to impose fuel surcharges, which are designed to help recover losses from fluctuating fuel prices.

As of June 2014, the following applications have been filed at the Civil Aeronautics Board to impose fuel surcharges on the following routes:

• Cebu Pacific: Cebu to Tandag (P300)
• Tigerair Philippines: Manila to Cagayan de Oro (P500)
• SkyJet: Manila to Basco (P2,940)
• SkyJet: Manila to Busuanga (P1,960)
• SkyJet: Manila to Caticlan (P2,613)
• Air Busan: Cebu to Busan ($60)

The Civil Aeronautics Board of the Philippines allows air carriers to impose fuel surcharges as a temporary relief to recover losses from rising jet fuel prices. It is traditionally a levy imposed in addition to the cost of an airfare. According to the latest data from the International Air Transport Association, jet fuel prices increased by 2.2 percent as of June 6 versus the same period last year. A growing number of lobbyists are calling on the Civil Aeronautics Board to mandate local airlines to display the full cost of a ticket in any promotional advertising or marketing.