Airline Ticket Prices in the Philippines Set to Increase

Airline tickets are set to increase as the Civil Aeronautics Board (CAB) allowed local airlines to impose fuel surcharges on their local and international flights. The resolution was issued on September 10th, 2018, Monday, granting the petition submitted by Philippine Airlines, Cebu Pacific Air and Philippines AirAsia.

Philippine Airlines (PAL) petition to charge fuel surcharge on December 2017. |
Copyright Photo: Angelo Agcamaran/PPSG

 The continuous rise of aviation fuel had led Philippine Airlines (PAL) to submit a petition ending last year to impose the fuel surcharge between Php 51 to Php 207. The price will also change depending on the current market prices according to Jaime Bautista, president and Chief Operating Officer (CEO) of PAL. Lance Gokongwei, CEO of Cebu Pacific Air, mentioned that they are losing about Php 500 million due to the cost of fuel, led them to follow suite. Philippines AirAsia also has filed their petition but CEO Dexter Commendador did not provide any details on their petition.

Cebu Pacific Air submitted a petition to charge fuel surcharge 6 months after PAL submitted their petition. |
Copyright Photo: Dirk Grothe, Aviation Photography 

NO FUEL SURCHARGES

In 2015, under Resolution No. 79, the CAB lifted the authority of domestic airlines and international airlines operating to and from the Philippines, to impose fuel surcharges on international and domestic flights. They mentioned that there is a substantial and continuous decrease of fuel in the world market which may deemed necessary to discontinue the charging of fuel surcharge. However, fuel prices has rose to $85.16 per barrel in April which is 25.24% higher compared to $63.66 in the same period from the previous year.

All passengers are expected to be charged of the fuel surcharge except for infants without seats.

Source: BusinessWorld, CNN Philippines, Civil Aeronautics Board