THE CIVIL Aeronautics Board (CAB) has set the passenger fuel surcharge at Level 16 for Oct. 16-31, down one notch from the first half of the month but still above the levels imposed in September.
Under Level 16, airlines may collect fuel surcharges ranging from P525 to P1,535 for domestic flights and from P1,733.76 to P12,891.29 for international flights, depending on distance.
The adjustment follows the implementation of Level 17 for Oct. 1-15, when fuel surcharges ranged from P559 to P1,635 for domestic flights and from P1,846.10 to P13,726.58 for international flights.
Despite the adjustment, the surcharge remains above Level 14, which was implemented during the second half of September.
The CAB earlier implemented Level 19 for April 16-30, the highest surcharge level imposed so far this year and one notch below the maximum allowable Level 20.
Fuel surcharges are additional fees that airlines may collect on top of base fares to offset fluctuations in jet fuel costs. The CAB determines the applicable surcharge level based on movements in jet fuel prices using the Mean of Platts Singapore benchmark.
The regulator shifted from a monthly review to a 15-day cycle amid volatility in global fuel prices following the conflict in the Middle East.
The interim review cycle will remain in place until market conditions stabilize or until the CAB revises or revokes the policy.
Airlines seeking to impose fuel surcharges must file an application with the CAB before the applicable period.
For airlines collecting fuel surcharges in foreign currency, the CAB set the applicable conversion rate at P62.65 per US dollar.
According to the International Air Transport Association, global jet fuel prices rose by 1.5% week on week to $190.18 per barrel as of Oct. 9. — Ashley Erika O. Jose