CAB lowers fuel surcharge for May flights

MANILA, Philippines — The Civil Aeronautics Board lowered fuel surcharges for domestic and international flights effective May, amid an explosion in tourist travel and expectations of fuel prices turning more expensive in the coming weeks. 

The CAB announced in a statement on Monday that airlines will need to lower fuel surcharge billed to passengers and cargo shipments for domestic and international flights in May. The action meant that fuel surcharges will now be at Level 5 from Level 6, which was announced a month ago. 

As it is, lower fuel surcharges do not automatically mean cheaper airfares for consumers. The cost of taking a plane flight could adjust due to a variety of reasons, such as higher demand or fuel prices turning more expensive.

Surcharges, such as this, are imposed by airlines to recoup costs since fuel prices are volatile.

The developments come at a precarious time for the tourism industry, which has seen its fortunes swing wildly since the pandemic sent air travel to a screeching halt. These days, airlines everywhere are eyeing to capitalize on the boons of revenge travel spending, as most economies reopened to business in 2022.

CAB monitors developments on fuel prices every month to evaluate the surcharge level. 

That said, the decision meant that fuel surcharge for domestic flights next month could range from P151 to P542, depending on the destination. 

For international flights, the fuel surcharge that airlines could charge in May will range from P498.03 to P3,703.11. 

The Philippine economy is expected to benefit from surge in travel and tourism this year. The Bangko Sentral ng Pilipinas projects travel receipts will grow 150% year-on-year in 2023. — Ramon Royandoyan