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Monday, Oct 27, 2025
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Philippine Airlines Reduce Fuel Surcharge to Record Low
Civil Aeronautics Board mandates airlines to cut fuel surcharge as jet fuel prices decline.
MANILA, Philippines — The Civil Aeronautics Board (CAB) has announced a significant reduction in the fuel surcharge for airlines, bringing it to an unprecedented low Level 3 for the month of June, down from Level 4 in May. This adjustment is expected to lower airfares for travelers during the approaching rainy season.
Under the newly established Level 3, airlines will be allowed to charge a fuel surcharge ranging from 83 pesos to 300 pesos for domestic flights, and from 273.36 pesos to 2,032.54 pesos for international flights, depending on the distance traveled.
In contrast, the previous Level 4 allowed surcharges between 117 pesos and 342 pesos for local flights and between 385.7 pesos and 2,867.82 pesos for international flights.
This reduction may stimulate air travel demand, particularly in June when passenger bookings typically see a decline.
The international price of jet fuel has also been dropping, providing airlines with the capacity to reduce operational costs.
According to data from the International Air Transport Association, jet fuel prices have decreased by two percent month-on-month, reaching $83.76 per barrel as of May 16.
During this period, CAB has advised airlines seeking to implement the new fuel surcharge to submit applications before June.
Furthermore, the CAB has established an exchange rate of 56.42 pesos to one US dollar, applicable to airlines dealing in foreign currencies.
In the first quarter of the year, major Philippine airlines reported an increase in passenger volumes.
Low-cost carrier Cebu Pacific led this trend with a reported 6.95 million passengers between January and March, marking an increase of over 25% and achieving a load factor of 84.9%.
Flag carrier Philippine Airlines also recorded a five percent rise in passengers, accommodating 4.1 million travelers.
Budget carrier AirAsia Philippines anticipates flying nearly three million passengers in the first half of the year, boasting a load factor of 85%.
The airline is experiencing heightened demand for flights to Puerto Princesa domestically and to Taipei internationally.
To meet this demand, AirAsia Philippines has enhanced its flight frequency to Kota Kinabalu from three times weekly to daily and plans to increase trips to Taipei to 17 times per week by July.
CAB permits airlines to impose fuel surcharges as a means of recouping costs resulting from fluctuations in the global fuel market.
Under the newly established Level 3, airlines will be allowed to charge a fuel surcharge ranging from 83 pesos to 300 pesos for domestic flights, and from 273.36 pesos to 2,032.54 pesos for international flights, depending on the distance traveled.
In contrast, the previous Level 4 allowed surcharges between 117 pesos and 342 pesos for local flights and between 385.7 pesos and 2,867.82 pesos for international flights.
This reduction may stimulate air travel demand, particularly in June when passenger bookings typically see a decline.
The international price of jet fuel has also been dropping, providing airlines with the capacity to reduce operational costs.
According to data from the International Air Transport Association, jet fuel prices have decreased by two percent month-on-month, reaching $83.76 per barrel as of May 16.
During this period, CAB has advised airlines seeking to implement the new fuel surcharge to submit applications before June.
Furthermore, the CAB has established an exchange rate of 56.42 pesos to one US dollar, applicable to airlines dealing in foreign currencies.
In the first quarter of the year, major Philippine airlines reported an increase in passenger volumes.
Low-cost carrier Cebu Pacific led this trend with a reported 6.95 million passengers between January and March, marking an increase of over 25% and achieving a load factor of 84.9%.
Flag carrier Philippine Airlines also recorded a five percent rise in passengers, accommodating 4.1 million travelers.
Budget carrier AirAsia Philippines anticipates flying nearly three million passengers in the first half of the year, boasting a load factor of 85%.
The airline is experiencing heightened demand for flights to Puerto Princesa domestically and to Taipei internationally.
To meet this demand, AirAsia Philippines has enhanced its flight frequency to Kota Kinabalu from three times weekly to daily and plans to increase trips to Taipei to 17 times per week by July.
CAB permits airlines to impose fuel surcharges as a means of recouping costs resulting from fluctuations in the global fuel market.
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