AIRFARES are likely to remain steady as the Civil Aeronautics Board (CAB) maintained the fuel surcharge at Level 3 for the month of July.
In an advisory on Wednesday, CAB said the passenger and cargo fuel surcharge for domestic and international flights will remain at Level 3 from July 1 to 30.
At this level, the passenger surcharge for domestic flights ranges from P83 to P300, while for international flights, it ranges from P273.36 to P2,032.54.
Since 2024, CAB has downgraded the fuel surcharge to Level 3 only twice — for June and July.
For airlines collecting the surcharge in foreign currency, the applicable conversion rate is P55.64 to the dollar, CAB said.
Fuel surcharges are adjusted based on the movement of jet fuel prices, using the Mean of Platts Singapore (MOPS) as the benchmark.
According to the International Air Transport Association (IATA), the global average jet fuel price rose by 2.2% week on week to $83.68 per barrel as of June 13. Year on year, the average price was down by 15.5%.
In a report dated June 2, IATA said the global aviation industry is expected to post strong growth, supported by declining jet fuel prices and the easing of visa restrictions.
Jet fuel is projected to average $86 per barrel in 2025, lower than the $99 average in 2024, IATA said. This could bring the industry’s total fuel bill to $236 billion, accounting for 25.8% of airline operating costs. — Ashley Erika O. Jose
