The Civil Aeronautics Board (CAB) reduced the fuel surcharge for air tickets for September to October, as it noted a decline in jet-fuel prices from June to July, a document from the regulator showed.
From Level 3, the air-services regulator decided to pare down the fuel surcharge component to Level 2, after jet-fuel prices averaged at $78.54 per barrel in the international market.
“This is equivalent to P25.29 per liter, which corresponds to Level 2 of the Passenger Fuel Surcharge Matrix,” the document read.
There are seven levels in the fuel surcharge matrix, each defining how much the airlines can charge on a per-kilometer basis.
Under the matrix, the second level of fuel surcharge allows airlines to charge passengers from P45 to P171 for domestic flights, and from P218 to P2,076 for international flights.
“Airlines wishing to impose or collect fuel surcharge for the same period must file its application with this office on or before the beginning effectivity period, with fuel surcharge rates not exceeding the stated level,” the document read.
The regulator monitors jet-fuel prices and decides on the fuel surcharge level for air tickets every two months. Once average prices of jet fuel reach P21 per liter, the regulator may decide to remove the fuel surcharge component again.
A fuel surcharge is a temporary relief granted to airlines to help them recover losses incurred from higher jet-fuel prices. Fuel accounts for over 60 percent of the expenses of carriers.
Data from the International Air Transport Association showed jet-fuel cost was at $75.64 per barrel as of August 16, 13 percent less than the year-ago price, and 4.6 percent lower than a month ago.