Philippine carriers seek fuel surcharge hike amid rising fuel costs

Several Philippine air carriers have filed requests with the Civil Aeronautics Board (CAB) to increase their fuel surcharges for domestic and international flights in an effort to offset losses caused by rising fuel prices.

Among those that have requested increased fuel surcharges is boutique airline SkyJet Airlines, in order to offset losses brought about by increased fuel prices. Photo by Adrian Smith.

Air Busan, Cebu Pacific Air, Tigerair Philippines, and SkyJet Airlines are among the carriers seeking approval for the increases.

Cebu Pacific Air has requested permission to impose a ₱300 fuel surcharge on its new Cebu to Tandag route, launching on June 29th, and a ₱500 fuel surcharge on its new Manila to Cagayan de Oro route.

Meanwhile, SkyJet Airlines has asked the CAB for authorization to apply fuel surcharges to its Manila to Basco (₱2,940), Busuanga (₱1,960), and Caticlan (₱2,613) routes.

Air Busan, a South Korean carrier, seeks to adjust its fuel surcharge for its Cebu to Busan route from $55 to $60.

Fuel surcharges offer airlines temporary relief from the worldwide surge in jet fuel prices. As defined by BusinessDictionary.com, a fuel surcharge is a levy added to a base fare to help airlines recover losses related to fluctuating fuel costs.

The International Air Transport Association (IATA) reports that fuel prices increased by 2.2 percent to $284.5 per gallon as of June 6th, compared to last year.