Manila, Philippines – Those planning to book a plane ticket in November will have to dig deeper into their pockets as the Civil Aeronautics Board (CAB) has announced that air fares are set to increase.
In its advisory, the CAB said it is raising the fuel surcharge to Level 7 for November from this month’s Level 6.
An airline fuel surcharg is an optional fee that are imposed and collected by airlines in order to recove fuel costs and stem losses caused by upward spikes in fuel cost.
In a statement, Air Asia Philippines announced on Thursday that its fuel surcharge for domestic flights would be from P219 to P689 and P772.71 to P1,124.26 for international flights depending on the distance.
Meanwhile, the carrier said it would continue to offer its monthly double-digit sale and has extended its peso sale to October 25 in order to cushion the impact of increased fuel surcharge.
According to CAB matrix, Level 7 means the airlines may collect a fuel surcharge of P219 to P739 for domestic flights and P722.71 to P5,373.69 for international trips.
Given the protocols followed, CAB stressed that said airlines planning to implement the new rates must file their application with the agency before November.
Carriers are told to apply a conversion rate of 56.77 to $1 for fuel surcharge to be imposed in foreign currency.
Before this this, CAB observed a fuel surcharge of Level 6 in October, which was the same rate that it applied in September.
Before reaching Level 6, the CAB kept the fuel surcharge at Level 4, forcing operators to keep air fares at their most affordable this year.
Airlines may add the fuel surcharge in the billing of their passengers to recoup their losses from price fluctuations in jet fuel.
Meanwhile, the country’s largest carriers are preparing for what could be their best performing fourth quarter since the pandemic, expecting to sell at least nine in every 10 seats until December.