Airfares to rise with return of fuel surcharges

12-Sep-2018 Intellasia | CNN | 6:00 AM Print This Post

Airfares are set to increase this month after aviation officials allowed local airlines to reimpose fuel surcharges for both domestic and international flights.

The Civil Aeronautics Board (CAB) on Monday issued a resolution granting the appeal of some local airlines to impose a fuel surcharge.

Local airlines, including the Philippine Airlines and Cebu Pacific Air, requested for the reimposition of the additional charges amid the increasing cost of aviation fuel in the global market.

According to the CAB, the price of aviation fuel in the global market rose to $85.16 per barrel in April. This was 25.24 percent higher than $63.66 per barrel in the same period last year.

“As airlines are now a primary mover of trade and transport, a matrix of fuel surcharge shall allow them to thrive and be more competitive in the global market,” CAB said in the resolution.

The transportation department also approved a fuel surcharge matrix.

Transportation Undersecretary for Aviation Manuel Tamayo said the fare hike is necessary, as the aviation industry is also affected by the rising oil prices.

The increase, he explained, will depend on the number of miles a passenger travels.

Tamayo said they will closely monitor airfares, and make sure that airlines come up with a “fair” fare structure.

http://cnnphilippines.com/news/2018/09/10/airfares-increase-hike-fuel-surcharge.html

 


Category: Philippines

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