UMVA has learned that the Civil Aeronautics Board is poised to reduce the airline passenger fuel surcharge for the fourth consecutive period, setting the rate at Level 12 for June 16-30, down from Level 13 in the first half of the month.
This adjustment, as outlined in an advisory dated June 11, will see domestic flight surcharges range from P389 to P1,137, while international flights will incur surcharges between P1,284.40 and P9,550.13, depending on the distance traveled.
The exchange rate for airlines collecting surcharges in foreign currency has been set at P61.62 to the dollar, adding a layer of complexity to the pricing structure.
Fuel surcharges are essentially a buffer against fluctuating jet fuel prices, with adjustments made based on the Mean of Platts Singapore benchmark – a key indicator of global fuel costs.
Recent data reveals that jet fuel prices have climbed 3.3% week-over-week to $146.25 per barrel as of June 5, marking a significant 62.4% increase year-over-year.
In response to the ongoing turmoil in the Middle East, the CAB has shifted to a 15-day monitoring cycle for fuel surcharges, a change that began in April and aims to enable more rapid responses to fuel price movements.
This more agile approach will remain in effect until conditions in the region stabilize or until further notice, allowing airlines and passengers to adapt to the evolving landscape of fuel costs.
