Cebu Pacific reviews fuel costs, routes amid rising oil prices

BUDGET CARRIER Cebu Pacific said it is reviewing jet fuel costs and network strategies to cushion the impact of rising global fuel prices despite growth in passenger volume.

“[W]e remain cognizant of the ongoing crisis and uncertainty in the Middle East, and the impact of sharply increasing fuel prices on our business,” Cebu Pacific Chief Executive Officer Michael B. Szücs said in a statement last week.

For the first two months of the year, Cebu Pacific logged 5.07 million passengers, up 7% from 4.74 million in the same period in 2025.

Domestic passengers accounted for the majority of the total at 3.74 million, while international passengers reached 1.33 million during the period.

“Our operating fundamentals — including our robust domestic network, modern fuel-efficient fleet, and low-cost structure — provide us relative advantages as we navigate these headwinds. We will continue to review pricing and network strategies to ensure we minimize the negative impact of the higher fuel prices,” Mr. Szücs said.

Cebu Pacific said its fuel-efficient fleet gives the airline some advantage in navigating challenges from rising global fuel costs.

The airline operates Airbus NEO aircraft, which are known for enhanced fuel efficiency. These represent the latest generation of Airbus planes designed to be highly compatible with sustainable aviation fuel (SAF).

According to monitoring by the International Air Transport Association (IATA), jet fuel prices rose 58.4% week on week to $157.41 per barrel as of March 6. On a yearly basis, jet fuel prices increased by 74.8%, data from the airline trade association showed.

On Friday, the Department of Transportation (DoTr), together with the Civil Aviation Authority of the Philippines (CAAP) and the Civil Aeronautics Board (CAB), ordered the reduction of passenger service charges, or terminal fees, for all government-operated airports in the country.

The Transportation department said the initiative aims to ease a possible increase in airfares as jet fuel prices climb. Based on its recent monitoring, jet fuel prices nearly doubled to $188.20 per barrel as of March 9 from $90.87 per barrel on Feb. 19.

Last year, CAAP approved the collection of new passenger service charges and other fees for all CAAP-operated airports.

Under Memorandum Circular 019-2025, CAAP raised terminal fees to P900 for international flights from P784. For domestic flights, the terminal fee is set at P350 if the passenger departs from an international airport. It is set at P300 for departures from a principal class 1 airport, P200 from a principal class 2 airport, and P100 for departures from community airports.

CAB has also shortened the evaluation period and implementation of the fuel surcharge to 15 days from one month to ensure that jet fuel prices are reflected more quickly and allow passengers to book tickets at more affordable prices.

The passenger fuel surcharge has remained at Level 4 since January. At Level 4, the surcharge ranges from P117 to P342 for domestic flights and from P385.70 to P2,867.82 for international flights originating from the Philippines. — Ashley Erika O. Jose