Airline fuel surcharge stays steady for February

THE Civil Aeronautics Board (CAB) said the passenger fuel surcharge will remain at Level 4 for February, keeping charges steady for the seventh consecutive month.

At Level 4, the surcharge will range from P117 to P342 for domestic flights and from P385.70 to P2,867.82 for international flights originating from the Philippines.

The surcharge has been at this level since August last year, CAB data showed.

For Feb. 1-28, airlines collecting the fuel surcharge in foreign currency may use the applicable rate of P58.94 per dollar, the CAB said.

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 (IATA), jet fuel prices rose 3.5% to $89.63 per barrel for the week ending Jan. 16, while on a year-on-year basis, prices declined by 0.4%.

IATA said airlines in Asia are likely to sustain growth this year, supported by strong demand in both passenger and cargo segments and by declining jet fuel costs, which account for the majority of airline operating expenses.

Fuel costs are projected to fall to $252 billion in 2026, largely due to expected declines in crude oil prices. — Ashley Erika O. Jose