DoTr reviews airline surcharges after Level 8 increase

THE Department of Transportation (DoTr) is reviewing airline fuel surcharges after regulators raised rates to Level 8 this month, as jet fuel prices remain elevated.

The DoTr, through the Civil Aeronautics Board (CAB), is assessing jet fuel prices to determine possible adjustments to passenger surcharges, following recent increases linked to the ongoing conflict in the Middle East.

“We started implementing the reduction of terminal fees for government-operated airports to help lower costs. But the problem really is jet fuel prices, so we are in talks with CAB to make necessary adjustments if needed. We are adjusting the fuel surcharge; it follows a matrix that goes up and down depending on the changes in fuel prices,” Transportation Acting Secretary Giovanni Z. Lopez said in a forum on Saturday.

Starting April, the CAB moved from a monthly review of fuel surcharges to a 15-day monitoring cycle to respond more quickly to price movements.

For April 1 to 15, the CAB imposed a Level 8 surcharge, up from Level 4 in March. This is the highest level since Level 6 in August 2024, though below the peak Level 12 recorded in August 2022.

At Level 8, airlines may charge fuel surcharges ranging from P253 to P787 for domestic flights. For international flights, surcharges range from P835.05 to P6,208.98, depending on distance.

The CAB has yet to release its advisory for the second half of April. Mr. Lopez said some countries have already imposed a Level 20 surcharge, the maximum allowed under the CAB framework.

At Level 20, airlines may collect surcharges ranging from P661 to P1,933 for domestic flights per way. For international flights, surcharges range from P2,183.11 to P16,232.44 per way, depending on distance.

For reference, passengers may pay an additional P2,183.11 for flights to Taiwan, Hong Kong, Vietnam, Cambodia, and Brunei; P3,396.10 for travel to Japan or South Korea; and about P15,459.47 for flights to North America and the United Kingdom.

“As of now, countries abroad have already imposed a Level 20 surcharge. We are talking to CAB to make necessary adjustments if needed. We are hoping not to reach Level 20,” Mr. Lopez said.

Fuel surcharges are variable fees collected on top of base fares to offset changes in jet fuel costs. These are adjusted based on movements in jet fuel prices using the Mean of Platts Singapore benchmark.

According to the International Air Transport Association, jet fuel prices fell 5.3% week on week to $197.83 per barrel. Year on year, however, jet fuel prices surged 119.7%. — Ashley Erika O. Jose