Airlines to charge cheaper in April

MANILA, Philippines — Filipinos will pay for cheaper airfares when they book flights in April, after the government lowered the fuel surcharge by a notch in time for the peak travel season.

In an advisory, the Civil Aeronautics Board (CAB) told airlines to bring down the fuel surcharge to Level 4 in April, from Level 5 this month.

At Level 4, airlines can charge a fuel surcharge of P117 to P342 for domestic flights and P385.70 to P2,867.82 for international trips.

Level 5 allows airlines to collect P151 to P542 for local flights and P498.03 to P3,703.11 for foreign trips.

The reduction in fuel surcharge bodes well for travelers who plan to book a flight during the dry season, when demand for air travel is at its highest.

CAB instructed airlines to submit an application to the agency before April if they want to charge the fuel surcharge. It set an exchange rate of P57.94 to $1 for airlines transacting in foreign currencies.

Based on the monitor of the International Air Transport Association, jet fuel prices have declined to $86.69 per barrel as of March 14 compared to a month ago.

Overall, airlines expect jet fuel prices to drop this year as global demand for diesel softens due to the shift to renewable energy, especially in leading economies like China and the US.

Airlines are allowed to collect a fuel surcharge to mitigate the cost impact of fluctuating prices in the international market.

The country’s leading carriers, Cebu Pacific and Philippine Airlines (PAL), are introducing more flights over the next few weeks to capitalize on the demand. Cebu Pacific is mounting Clark trips to Busuanga and El Nido starting March 30.

In April, Cebu Pacific will also launch weekly flights between Cebu and Ho Chi Minh, marking the first Visayas connection to Vietnam. PAL will follow suit in May, launching its own weekly flights on the same route.

In Clark, PAL is also upgrading services to Basco and Siargao to a daily frequency by May 1, as the airline sees potential in the booking volumes to these destinations.

Based on data from CAB, Philippine air passenger volume increased by 11 percent to 59.91 million last year, from 53.78 million in 2023, as carriers brought in more flights and new routes to stimulate demand.