Cheaper airfare expected as jet fuel surcharge drops further

MANILA, Philippines — Passengers can expect to pay less in fuel-related airfare add-ons starting July 16, as the Civil Aeronautics Board (CAB) trimmed the jet fuel surcharge to its lowest level since the Middle East conflict erupted earlier this year.

The CAB confirmed in a Monday advisory that the passenger fuel surcharge will drop to Level 8 — the same rate that was in place during the first half of April, before the situation in the Middle East pushed fuel costs sharply higher following the Feb. 28 outbreak of hostilities.

The revised rate takes effect July 16 and stays in place through July 31, marking a one-notch decrease from the Level 9 surcharge that had applied since July 1.

READ MORE: Another spike in air tickets as jet fuel surcharge nears ceiling

Under the new Level 8 schedule, domestic travelers can expect airlines to add anywhere from P253 to P787 to ticket prices, a reduction from the P287-to-P839 range charged under Level 9. International passengers will see surcharges between P835.05 and P6,208.98, down from the previous P947.30-to-P7,044.27 bracket.

This marks the sixth consecutive rate cut, yet surcharges are still far higher than they were before the conflict began. Back at Level 4, domestic surcharges topped out at just P342, while international add-ons capped at P2,867.82 — underscoring how much room remains before rates return to pre-crisis norms.

Notably, the CAB has not reinstated its standard monthly review schedule for these adjustments. The agency shortened the review window to every 15 days back in March, a move it said was meant to keep surcharges more closely aligned with real-time fuel costs.

Fuel costs leveling off, but risks linger

Jet fuel prices have shown signs of stabilizing following a preliminary ceasefire understanding between the United States and Iran, though fresh flare-ups between the two nations have injected some uncertainty back into the outlook.

According to the International Air Transport Association (IATA), jet fuel averaged $119.13 per barrel as of July 3, up slightly from $116.63 the week before. That’s still a steep drop from the more than $200-per-barrel peak seen in April, when the conflict was at its most intense.

Fuel price swings carry outsized weight for airlines, since fuel expenses typically eat up 25 to 30 percent of total operating costs, per IATA figures.

An April report from Oxford Economics flagged the Philippines and Thailand as among the economies most exposed to a potential aviation downturn tied to elevated jet fuel prices.

At the peak of the crisis, several Philippine carriers pulled back on Middle East routes entirely as fuel costs spiked.

READ MORE: Gov’t told to scrap tax on jet fuel

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