Philippines fuel surcharge rises for early November flights

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Fuel surcharge rise in November

Highlights

Philippines Civil Aeronautics Board raises airline fuel surcharge matrix to Level 17 for Nov. 1–15, allowing P559–P1,635 domestic and P1,846.10–P13,726.58 international charges.
CAB maintains a 15-day review cycle and sets P63.01 per dollar exchange rate for November fuel surcharges, citing global jet fuel price volatility.
Global jet fuel prices rise 2.2% week on week to $196.70 per barrel as of Oct. 23, marking a 118.5% increase year on year.

Surcharge matrix increases for Nov. 1-15

As reported by BusinessWorld Online, citing the Civil Aeronautics Board, airlines may collect fuel surcharges under Level 17 from Nov. 1 to 15, one step higher than Level 16 in the second half of October. The regulator says the allowable charge for a one-way domestic flight ranges from P559 to P1,635, while a one-way international flight may carry a surcharge of P1,846.10 to P13,726.58, depending on destination.

The previous Level 16 matrix allowed charges of P525 to P1,535 for domestic flights and P1,733.76 to P12,891.29 for international services from Oct. 16 to 31. For airlines collecting fuel surcharges in foreign currencies, CAB sets the applicable exchange rate for the first half of November at P63.01 per dollar.

CAB's latest adjustment marks the second time this year that Level 17 applies, after its earlier use from Oct. 1 to 15. The highest surcharge level imposed this year is Level 19 from April 16 to 30, followed by Level 18 from May 1 to 15.

Jet fuel volatility shapes airline charges

Fuel surcharges are additional fees that airlines may collect on top of base fares to recover part of their jet fuel costs, although carriers are not required to impose the maximum amount allowed under the CAB matrix. The regulator determines the applicable level using movements in jet fuel prices based on the Mean of Platts Singapore benchmark.

CAB shifts from a monthly review to a 15-day cycle amid volatility in global fuel prices following the conflict in the Middle East. The interim arrangement remains in effect until market conditions stabilize or the regulator revises or withdraws the policy.

Based on CAB's indicative rates, airlines may collect P2,553.19 in fuel surcharges for one-way flights to Singapore, Thailand, and Malaysia. The surcharge may reach P2,871.83 for flights to Indonesia, Japan, and South Korea, while some North American routes may carry a one-way surcharge of P13,072.93.

Global jet fuel prices rise 2.2% week on week to $196.70 per barrel as of Oct. 23, according to International Air Transport Association data. The latest price is also 118.5% higher than a year earlier.

Rising crude oil shipping costs driven by conflict-related risks have become a major new component of global fuel pricing, with tanker freight and insurance premiums surging on key routes such as the Strait of Hormuz and the Red Sea. Our earlier article explained how rerouting, added risk premiums, and tighter vessel availability are lifting delivered oil costs and can filter through into higher gasoline and broader consumer prices—pressures that ultimately feed into energy-sensitive charges like air travel fees.

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