CAB lowers fuel surcharge for flights in June: Philippines

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The Civil Aeronautics Board marked down fuel surcharges for international and domestic flights in June, aiding the local tourism sector's recovery from the pandemic.

The CAB announced in a statement on Thursday that airlines will need to lower fuel surcharge billed to passengers and cargo shipments for domestic and international flights in June. The move meant that fuel surcharges will now be at Level 4 from Level 5, which was lowered in April as well.

As it is, lower fuel surcharges do not automatically mean cheaper airfares for consumers. The cost of taking a plane flight could adjust due to a variety of reasons, such as higher demand or jet fuel prices turning more expensive.

Airlines impose surcharges on consumers to recoup costs since fuel prices are volatile. However, this additional cost is not part of basic airfares.

CAB monitors developments on fuel prices every month to evaluate the surcharge level.

That said, the decision meant that fuel surcharge for domestic flights next month could range from P117 to P342.

For international flights, the fuel surcharge that airlines could charge in June will range from P385.7 to P2,867.82.

The Philippine economy is expected to benefit from surge in travel and tourism this year. The Bangko Sentral ng Pilipinas projects travel receipts will grow 150% year-on-year in 2023.