Airlines in the Philippines Apply for Increase in Fuel Surcharge

Airline operators Cebu Pacific Air and Philippine Airlines have filed an application for an . This petition translates to affected ticket prices. The price hike will not only have an impact on travellers but on goods that require air transport as well.

Fuel surcharge

Due to the volatile fuel costs, the Civil Aeronautics Board (CAB) grants airlines fuel surcharge. The surcharge helps airline carriers to recover losses. It also aids in minimising the company’s most significant operating expense.

Also read: 5 Best Low Cost Long-Haul Airlines for Budget Travellers

This year, the Philippine Peso has hit its lowest level in 12 years. The price of oil continues to rise as well. The problem with the weakening currency and oil price is a dangerous combination for the top two airline carriers in the Philippines.

Cebu Pacific Air President and Chief Executive Lance Gokongwei confirmed this after the stockholder’s meeting of JG Summit Holdings on Monday this week. The company is trying to become more efficient. However, the need to offset the losses and an will be necessary to reduce the damage.

Image credit: Masakatsu Ukon

Budget airline Cebu Pacific Air seeks to increase fuel surcharge from ₱70 to ₱250 for domestic flights. Unfortunately, this is the lowest possible amount they could negotiate. Lance Gokongwei said that it would only recover about half of the additional cost the company is currently facing. Cebu Pacific Air is also suffering from loss of revenue after the Boracay closure on 26 April 2018.

Also read: The Sun Sets in Boracay: A Weekend Before Shutdown

Image credit: RM Bulseco

Waiting game

Jaime Bautista, President of Philippine Airlines, said that the application has been with the Civil Aeronautics Board for three months already. However, there’s still no response and action until now.

Published at


About Author

Stella Marie Encina

While devoting her daytime in managing their family business, Stella spends her nights carefully planning her next adventures and composing short stories. She is in love with hole-in-the-wall destinations and writes about her quests on her online journal <a href="https://www.herbravesoul.com">Her Brave Soul</a>.

Brand Managers!

Want to see your brand or business in this story?

Talk to us now

Subscribe our Newsletter

Get our weekly tips and travel news!

Recommended Articles