International commercial air traffic soared by 28 percent during the first quarter of the year, but the growth posted by local carriers were outpaced by their foreign counterparts.
Data obtained from the Civil Aeronautics Board (CAB) showed that airlines with operations to and from Manila flew a combined 5.34 million international passengers during the first three months of the year, a 28-percent rise from 4.19 million passengers the year prior.
Domestic carriers flew 2.54 million of the total passenger count, roughly 12 percent higher than the 2.27 million in 2014.
Legacy carrier Philippine Airlines sliced half of the international traffic for local carriers at 1.463 million. Cebu Pacific trailed behind with 837,942, followed by AirAsia Zest with 174,246. These figures are higher when compared to the air-traffic performance in the first quarter of 2014. Foreign carriers, however, grew by a faster 47 percent, to 2.8 million passengers from 1.91 million passengers.
Officials of the air-services regulator were sought for further details, but they were not available as of press time. Domestic and international air travel are expected to get a boost this year after the regulator decided to scrap the fuel surcharge from airline fares due to the declining prices of jet fuel in the international market.
A fuel surcharge is a temporary relief granted to airlines to help them recover losses incurred from higher jet-fuel prices. It ranges from P500 to as high as P15,000, depending on the destination.
Fuel prices have been dropping as the Organization of the Petroleum Exporting Countries decided to maintain current production levels despite a glut in the market with an estimated oversupply of 1.5 million to 2 million barrels daily.
Following a period of relative stability of above $100 per barrel, oil prices have plunged since mid-2014, falling by more than $40 per barrel to five-year lows.
Fuel accounts for as much as 60 percent of an airline’s operating cost per passenger, and is the second-highest expense next to labor.
Data from the International Air Transport Association showed that jet-fuel cost was at $63.5 per barrel as of July 31, down by 14 percent from the preceding month and 47.7 percent less than the year-ago price.