Air travel may get some relief as fuel costs continue to rise. To help reduce the pressure on airlines and passengers, the DOTr has ordered lower Passenger Service Charges and airport navigation charges at all airports run by the Civil Aviation Authority of the Philippines.
The order came from Department of Transportation (DOTr) Acting Secretary Giovanni Lopez, who said the move is meant to help soften the impact of higher jet fuel prices caused by the conflict in the Middle East. Fuel is one of the biggest costs for airlines, so when prices rise this sharply, airfare and other travel costs often come under pressure as well.
“Ito ay para mapagaan ang pasanin ng mga pasahero ng mga airline kasunod ng pagtaas ng jet fuel sa buong mundo dahil sa digmaan sa Middle East (This is to lessen the burden of airline passengers following rising jet fuel costs worldwide due to the ongoing conflict in the Middle East),” he said.
According to the DOTr’s latest data, jet fuel prices climbed from USD90.87 per barrel on February 19 to USD188.2 per barrel on March 9. That jump explains why the government is now stepping in with cost-cutting measures at CAAP-operated airports across the country.
Faster airfare action once fuel prices settle
Lopez also ordered the Civil Aeronautics Board to cut its evaluation and implementation period to 15 days. The idea is to make it easier and faster to lower airfares once jet fuel prices begin to stabilize.
That matters because airfare adjustments do not always move quickly, especially when market conditions change fast. A shorter review period could help make sure fare reductions happen sooner instead of being delayed by longer regulatory processing.
“Patuloy na mino-monitor ng pamahalaan ang sitwasyon at ang pakikipagtulungan sa aviation industry para matiyak na mananatiling ligtas, maaasahan, at abot-kaya ang air travel para sa publiko (The government continues to monitor the situation and is working with the aviation industry to ensure safe, reliable, and affordable air travel for the public),” Lopez said.
The Philippines is not alone in dealing with this problem. Several Asian airlines have already announced plans to raise fares or adjust fuel surcharges because of the ongoing war involving the US, Israel, and Iran. Airlines with confirmed fare hike plans include AirAsia, Air India, Air New Zealand, Hong Kong Airlines, Japan Airlines, Qantas, and SpiceJet.
The government’s latest move now shifts attention to how quickly these lower airport charges can be carried out and how much relief they can actually bring. Airlines are still facing a difficult fuel environment, but lower airport-related costs could help ease some of the pressure while the market remains unstable.
Attribution: PNA
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