Budget airline Cebu Pacific and its newly acquired unit, Tigerair Philippines, are increasing their airfare prices by as much as 160 percent.
The decision to raise ticket prices was made due to the recent surge in the price of aviation fuel in the world market and the weakening of the Philippine peso against the US dollar.
Cebu Pacific’s Vice President for Corporate Affairs, Jorenz Tanada, confirmed that the airline had filed a petition to raise airfares before the Civil Aeronautics Board on January 21.
The airline’s request for an upward adjustment of fuel surcharges was due to the increasing fuel uplift costs related to transferring fuel, on top of the prevailing jet fuel price, and the weakening peso, according to Tanada.
The International Air Transportation Association’s latest Jet Fuel Price Monitor revealed that the price of jet fuel averaged $124.6 per barrel, which is already above the full-year target of $124 per barrel. In recent weeks, the Philippine peso weakened to above P45 to $1.
On Wednesday, the Philippine peso closed at P44.830 to the dollar.
Cebu Pacific is seeking to impose higher fuel surcharges, ranging from 10% to 160%, on 22 international routes from its hubs in Manila, Cebu, Iloilo, and Clark.
The CAB allows airlines to impose fuel surcharges on international and domestic passengers as a way of providing temporary relief from losses due to the increase in jet fuel prices in the world market.
Leave a Reply