Air fares set to rise next year

MANILA, Philippines — Air fares are set to rise next year due to the increase in jet fuel prices, according to the Civil Aeronautics Board (CAB).

In an advisory, the CAB said the applicable passenger fuel surcharge for domestic and international flights from Jan. 1 to Feb. 28, 2022 would increase to Level 3 from the prevailing Level 2 until yearend.

This means that airlines can impose an increase of P74 to P291 for domestic passengers, and P381 to P3,632 for international passengers under the Level 3 of the fuel surcharge matrix.

Compared to Level 2, which is being implemented from Nov. 1 to Dec. 31, airlines are allowed to impose an increase of P45 to P171 for domestic flights, and P218 to P2,076 for international flights.

The applicable fuel surcharge level for the first two months of 2022 was based on the average price of jet fuel during the months of October and November 2021.

“For October to November 2021, the price of jet fuel averaged $94.29 per barrel, with the foreign exchange rate of P50.65 to $1 for the period. This is equivalent to P29.98 per liter, which corresponds to Level 3 of the passenger fuel surcharge matrix,” the CAB said.

Local and foreign airlines are allowed to collect fuel surcharge rates that are lower than the stated level for the given two-month period if they choose to do so depending on how they want to compete with other carriers.

“Airlines wishing to impose or collect fuel surcharge for the same period must file its application with this office on or before the effectivity period, with fuel surcharge rates not exceeding the above-stated level,” the CAB said.