Passengers booking flights for the first half of April will face higher travel costs after the Civil Aeronautics Board (CAB) raised the fuel surcharge for domestic and international flights to Level 8. That is a sharp increase from Level 4 in March, and it gives airlines room to collect much higher charges on top of the base fare.
For domestic flights, the allowed fuel surcharge now ranges from PHP 253 to PHP 787. Under the current Level 4, the range is only PHP 117 to PHP 342. For international flights departing from the Philippines, the surcharge under Level 8 ranges from PHP 835.06 to PHP 6,208.98. Under Level 4, it ranges from PHP 385.70 to PHP 2,867.82. The CAB also set the exchange rate for airlines collecting the surcharge in foreign currency at PHP 58.11 to the dollar.
Fuel surcharge is a separate fee that airlines may add to help offset changes in jet fuel prices. In the Philippines, the level is adjusted based on the Mean of Platts Singapore benchmark. The move to Level 8 shows how much pressure rising fuel prices are putting on airline costs, which then affects passengers through higher booking charges.
Shorter review cycle may speed up fare changes
This increase also comes with a new system for reviewing fuel surcharges. The CAB is now using a 15-day monitoring and implementation cycle instead of the old one-month cycle. This is the first time the board is applying the shorter period for both domestic and international flights.
The shorter cycle is meant to help regulators respond faster when fuel prices rise or fall sharply. Instead of waiting a full month before making changes, the CAB can now adjust the surcharge level more quickly. That means increases can take effect faster when fuel prices climb, but it also means reductions can happen sooner when prices begin to ease.
The CAB said the shorter cycle may also help soften the impact on passengers because changes can be made in smaller steps instead of building up over a longer period. It also said the next applicable fuel surcharge level will be announced at least three days before it takes effect. This temporary system will stay in place until global oil prices become more stable.
For travelers, the immediate effect is clear. Tickets booked from April 1 to 15 are set to cost more than tickets booked in March. The new review cycle may help if fuel prices settle, but for now, passengers should expect higher charges on both domestic and international flights.
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