PHILIPPINES AirAsia, Inc. said it will not impose a fuel surcharge for domestic and international flights despite securing approval from the Civil Aeronautics Board (CAB), in a move aimed at keeping its fares low in a competitive market.
In a text message to BusinessWorld, an AirAsia Philippines representative confirmed its application for fuel surcharge has been approved by the regulator, but “opted not to do it.”
“We are not charging fuel surcharge in all our flights,” the company representative said.
The Civil Aeronautics Board last month adopted a matrix for fuel surcharge that will be based on the two-month average of jet fuel MOPS (Mean of Platts Singapore) prices in its peso per liter equivalent.
The regulator said allowing carriers to implement a fuel surcharge will help them cope with the surge in jet fuel prices.
“We are closely monitoring the impact of high oil price on our operations, however, we are also working hard to offset the sharp jet fuel costs by adopting cost efficient measures across the network or within the AirAsia Group,” AirAsia Philippines CEO Captain Dexter M. Comendador said in a separate statement.
The International Air Transport Association (IATA) said the price of aviation fuel as of Sept. 21 is at $91.65 per barrel, 28.43% higher than in the same period last year.
Philippine Airlines and Cebu Pacific have already raised fares to include the fuel surcharge. — Denise A. Valdez