Philippines: Fuel surcharge cut by 20% boosts air travel

Synopsis: With the fuel surcharge (FSC) rate dropping from its current Level 9 to Level 8 beginning in November, authorities anticipate a boost in the travel industry for the Christmas season

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Christmas preparation is at its peak in many countries, and the travel industry wants a much-needed initiative to boost the economy. Keeping this in mind, aviation companies decided to reduce the fuel surcharge (FSC) rate from level 9 to Level 8, starting from November.

The local airline industry welcomed the Civil Aeronautics Board’s (CAB) directive on Wednesday, October 19, with the hope that it would increase holiday travel bookings in the coming months.

Carmelo Arcilla, the executive director of the CAB, signed an advisory from the aviation industry regulator that says fuel surcharges for passengers and cargo on domestic and international flights will be set at Level 8 of the CAB’s fuel surcharge matrix from November 1 to November 30. This was less than the charges that were collected during September and October when the fuel surcharge was set at Level 9.

Revised fuel surcharge will be applicable to all tickets purchased in the month of November.

Philippine Airlines (PAL) Spokesperson Cielo Villaluna stated, “We are delighted to work together. Our fuel surcharges will be adjusted in accordance with the most recent CAB directive.”

Expanding capacity

The good news, in Villaluna’s words, “comes at a time when we are expanding flight capacity across our local and international route networks.”

Steve Dailisan, who is the head of communications and public affairs for AirAsia Philippines and a spokesperson for the company, says that the FSC downgrade has a big positive effect on holiday travelers.

Boost in travel demand

The fuel surcharge cost from Manila to Cebu will be reduced by up to 12% from PHP571 to PHP503. Also, for flights from Manila-Davao, the fuel surcharge cost will be reduced by 9.46% are cost around PHP708 which was PHP782 in October.

In an interview with a local media company, Dailisan stated,the lower rate will significantly increase the demand for flight tickets.

He continues, “AirAsia is looking to meet a high average of 90–95% in domestic load factor in the fourth quarter.

The low-cost carrier regularly runs sales toward the end of the year to reduce the cost of travel as demand rises.

Also, AirAsia Philippines is now offering a 20% OFF promotion for customers flying from November 1, 2022, to June 30, 2023, which may be booked through the AirAsia Super App until October 23.

“We are pleased to enable more friends and families to share in the most joyous season,” Dailisan said.

Cebu Pacific, a local airline, is currently offering base fares for Manila-Davao and other domestic destinations for as little as PHP88 one-way and for a few select international destinations for as little as PHP999 one-way.

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