Philippines’ airfares to rise amid fuel surcharge hikes
Passengers flying to or from the Philippines in early November may face higher ticket costs, as airlines are allowed to raise fuel surcharges to their highest level since May.
The Civil Aeronautics Board announced on Tuesday that it will increase the allowable fuel surcharge for domestic and international flights on November 1. The move comes as airlines add fuel surcharges to base fares to offset rising fuel prices. The fuel surcharge for domestic flights can now reach up to 559 to 1,635 pesos (US$29.9-87.5) per passenger, while international flights can charge between 1,846.10 to 13,726.58 pesos.
This increase represents a 6.5% hike, which is a result of global jet fuel prices rising for four consecutive weeks. The surge in prices is due to volatility in oil markets and ongoing hostilities in the Middle East. In October, jet fuel prices reached $196.70 per barrel, up from $192.44 the previous week. Prices have been trending upward since late September when they averaged $185.43 per barrel.
The International Air Transport Association reported that jet fuel prices surpassed $200 per barrel during the peak of the conflict. Despite the volatility, the Civil Aeronautics Board has not resumed its regular monthly fuel surcharge reviews, instead opting for reviews every 15 days to minimize the lag between actual fuel costs and applicable fuel surcharges.
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