THE Civil Aeronautics Board (CAB) said it is keeping the passenger fuel surcharge unchanged at Level 4 in January, the sixth month it will be held steady.
At Level 4, the passenger fuel surcharge will range between P117 and P342 for domestic flights, and between P385.70 and P2,867.82 for international flights originating from the Philippines.
The passenger fuel surcharge has remained at Level 4 since August. For airlines collecting fuel surcharge in foreign currency, CAB said the applicable rate for January is P58.91 to a dollar.
Fuel surcharges are adjusted based on movements in jet fuel prices, using the Mean of Platts Singapore (MOPS) benchmark.
According to the International Air Transport Association, jet fuel prices declined 3% to $86.88 per barrel for the week ending Dec. 12; on a year-on-year basis, the global average jet fuel price dropped 12.3%.
In June, the trade association said airlines are projected to record a net profit of $36 billion this year, driven mainly by passenger revenue and steady jet fuel prices.
Jet fuel is expected to average $86 per barrel in 2025, below last year’s $99 average, translating to about $236 billion in fuel costs, equivalent to 25.8% of total airline operating costs. — Ashley Erika O. Jose