The Civil Aeronautics Board announced a reduction of the airline passenger fuel surcharge to Level 8 for the period of July 16‑31, marking the sixth consecutive cut under its 15‑day review cycle.
Under Level 8, airlines may levy a domestic fuel surcharge ranging from P253 to P787 per passenger, while international flights originating in the Philippines may charge between P835.05 and P6,208.98. For surcharges collected in foreign currencies, the board set the exchange rate at P61.43 per US dollar.
Fuel surcharges are variable fees added to base fares to offset fluctuations in jet fuel costs. The board adjusts these fees based on movements in jet fuel prices using the Mean of Platts Singapore benchmark.
Data from the Department of Energy indicated an average daily fuel demand of 78.08 million liters as of July 10. Average daily jet fuel demand stood at 5.65 million liters, and the available jet fuel supply is sufficient for 80 days.
Monitoring by the International Air Transport Association showed jet fuel prices rose 2.1 percent week‑on‑week to $119.13 per barrel as of July 3, remaining 32.3 percent higher than a year earlier.
Philippine airlines posted weaker first‑quarter earnings. Cebu Air recorded a net loss of P419.94 million, reversing the previous year’s profit, while PAL Holdings reported net income of P4.28 billion, a 1.15 percent decline.
The airline trade group warned that the Middle East conflict and rising fuel costs continue to weigh on the industry outlook. It cut its 2026 global airline net‑profit forecast to $23 billion from $41 billion, indicating profitability is expected to halve compared with 2025.
At the height of the recent jet‑fuel surge, the board raised the passenger surcharge to Level 19 for April 16‑30, the highest level since 2022, when jet fuel averaged $184.63 per barrel.
In April, the board shifted from a monthly to a 15‑day review cycle to respond more quickly to fuel‑price volatility stemming from the Middle East conflict. The first adjustment under the new schedule lowered the surcharge to Level 18 for May 1‑15.
